Fleet & lease values remain stable but will come under pressure in coming weeks
BCA's data wholesale fleet & lease values fell by just £8 to £7,545 in March, with CAP performance dropping by over a point to 96.4%. This is despite sold volumes rising by some 8.7% over the month and a very similar spread of product sold. Year-on-year values are behind by £48, equivalent to a 0.6% drop, and BCA warns that conversion rates for corporate sellers have fallen since January while entries have risen quite sharply following the March plate change.
Values across the board in March fell to £5,752, down by £233 (3.8%) compared to February's figure of £5,985. Year-on-year, March 2011 is £39 (0.6%) behind the same month in 2010 while average monthly values are currently at the lowest point recorded since May 2010.
Performance against CAP Clean dropped by one and a half points to 95.9%, down from the 97.4% achieved across the board in February. In March 2010, the CAP Clean performance averaged 98.5%, so year-on-year figures are down by just over two and half points.
Sold volumes rose by a significant 11.5% compared to February, underlining a March market that was reasonably bullish, particularly when placed in context of the 4% drop in sold volume experienced between January and February.
Manheim's data for March shows that there was a modest increase in fleet & lease values, which rose by 0.8% (£50) to £6,444. Examples of increases in values include Superminis up 7.7% (£269) to £3,756, Large Family up 1.8% (£90) to £5,047, Mini MPV up by 3.1% (£148) to £4,892 and MPV up 5.7% (£377) to £6,982.
Notable examples of decreases in average values in March in the Fleet sector include Compact Executive down 4.7% (£419) to £8,391 and Executive down 4.9% (£541) to £10,501.
Mike Pilkington, managing director, Manheim Remarketing, said: 'Used car retail demand through March remained stable rather than buoyant with well presented, well prepared vehicles attracting interest and healthy values. Those vehicles in poor condition with patchy service history and missing documents still attracted bids but needed to be valued sensibly with reserves set with an air of realism. As the weather improves, convertible values are strengthening while the opposite can be said of 4x4s with values beginning to ease after a lengthy and sustained period of stability. The short-term outlook will continue to see pressure on used car values with careful stock management essential to deliver best returns and speedy disposal.'