Fleet values remain up in latest BCA data
Manheim's April data showed that fleet values fell in April by 1.5%, as did overall used car values as a whole.
However, in BCA's latest Pulse report it says that it saw average Fleet & Lease values rise for the fourth month running, with 3.6% (£278) added to the average value in April. Values increased from £7,593 to £7,871, although performance against CAP Clean fell for the first time since November from 99.1% to 96.9%.
Year-on-year values remain ahead by £986 – the margin actually increasing over last month. However, BCA still expects this figure to fall in the months ahead.
Looking at fleet and lease product by sector, the rise in value was seen in volume fleet product, which rose from £5,712 to £5,835 (+ £123 or 2.1%) and premium fleet stock, which improved by £379 to £11,396, an increase of 3.4%. Budget fleet cars remained virtually static at £4,187, following a big rise of 18.6% in March.
From an overall used car market perspective, BCA's data shows that average used car values increased by 1.4% (£80 in April to reach £5,871. Performance against CAP Clean fell however by nearly two and a half points. Year-on-year values were ahead by just £230 and this margin has been reducing since the turn of the year – certainly when compared to the figures seen during the accelerating recovery in 2009.
Looking beneath the monthly figures, BCA says that it is seeing some degree of price fatigue, as values fell week by week in April, in the immediate post-Easter period as increased volumes reached the market.
BCA’s Tony Gannon commented: 'In the four weeks since Easter, we have seen in the market consecutive weekly increases in auction entry, falls in conversion rates and a reduction in both actual prices and performance against CAP. In many ways, normal service has been resumed, following the unusual patterns seen last year when the market just kept rising until the autumn. This year is likely to follow the pattern of previous typical years, with softer demand through the summer months.'
He added: 'We do not expect anything like the meltdown of 2008 but the coming months will not be as easy as those enjoyed in the first quarter. History tells us that prices come under pressure at this time of year and there are some signs that is already happening. A still fragile economy coupled with the aftermath of the general election will not help matters, so do not be surprised if there is some pressure on used vehicle values in the weeks and months to come.'