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Fleet/lease values maintain steady performance in September

The latest Pulse report shows that fleet & lease cars averaged £9,700 in September, up by £52 (0.5%) compared to August. BCA added that average values have been relatively stable around £9,700 since February of this year. Retained value against original MRP (Manufacturers Retail Price) was down slightly at 42.09% over the month, with age and mileage broadly static. 

Average fleet & lease values were up by £255 (2.7%) compared to September 2014, with performance against CAP Clean up by half a point and retained value down by a third of a percentage point on 2014. 

However, the headline average value declined by £137 (1.7%) as there was an increase in the share of dealer part-exchange cars sold over the month, compared to higher value fleet and lease cars. 

With this change in model mix, the headline average value of a used car fell to £7,702, with performance against CAP Clean improving by a point to 98.65%. Year-on-year, average values were up by £273 (3.6%), with age static and mileage falling. Performance against CAP was up by one percentage point compared to 2014. 

Simon Henstock, BCA’s UK operations director, commented: “September was a strong month at BCA, with independent buyers particularly active and bidding strongly. We are seeing a good balance between supply and demand in the wholesale markets.” 

He added: “There is still plenty of volume in the pipeline due to arrive, however, and we will be seeing greater numbers of ex-fleet and part-exchange vehicles over the coming weeks. With greater choice for buyers in the marketplace, volume sellers should review their pricing strategy to reflect this changing dynamic. Cars in poor colours, with a high mileage, or requiring paintwork and repairs should be valued realistically to sell, reflecting their condition and grade. Dealers will look to buy stock that requires little or no refurbishment and any vehicles needing paint work or repairs will need to be priced accordingly – particularly as fresh stock arrives in the coming weeks.” 

Fleet/lease values maintain steady performance in September

Average values for fleet and lease cars saw a slight rise in September, maintaining the steady price performance in the fleet & lease sector seen throughout most of 2015, according to BCA.

 

The latest Pulse report shows that fleet & lease cars averaged £9,700 in September, up by £52 (0.5%) compared to August. BCA added that average values have been relatively stable around £9,700 since February of this year. Retained value against original MRP (Manufacturers Retail Price) was down slightly at 42.09% over the month, with age and mileage broadly static.

 

Average fleet & lease values were up by £255 (2.7%) compared to September 2014, with performance against CAP Clean up by half a point and retained value down by a third of a percentage point on 2014.

 

However, the headline average value declined by £137 (1.7%) as there was an increase in the share of dealer part-exchange cars sold over the month, compared to higher value fleet and lease cars.

 

With this change in model mix, the headline average value of a used car fell to £7,702, with performance against CAP Clean improving by a point to 98.65%. Year-on-year, average values were up by £273 (3.6%), with age static and mileage falling. Performance against CAP was up by one percentage point compared to 2014.

 

Simon Henstock, BCA’s UK operations director, commented: “September was a strong month at BCA, with independent buyers particularly active and bidding strongly. We are seeing a good balance between supply and demand in the wholesale markets.”

 

He added: “There is still plenty of volume in the pipeline due to arrive, however, and we will be seeing greater numbers of ex-fleet and part-exchange vehicles over the coming weeks. With greater choice for buyers in the marketplace, volume sellers should review their pricing strategy to reflect this changing dynamic. Cars in poor colours, with a high mileage, or requiring paintwork and repairs should be valued realistically to sell, reflecting their condition and grade. Dealers will look to buy stock that requires little or no refurbishment and any vehicles needing paint work or repairs will need to be priced accordingly – particularly as fresh stock arrives in the coming weeks.”

 

Year-on-year table: Fleet & lease

 

Fleet/ Lease

Avg Age (months)

Avg Mileage

Avg Value

Sale vs CAP

Sales vs MRP

 

Sept 2014

 40.27

47,263

£9,445

 97.46%  

 

46,0

£8,734

 

Sept 2015

 40.15

45,146

£9,700

 97.95%  

 

 

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.