Fleet/lease values reach record high in September, BCA reports
Continued used car demand helped push fleet/lease values to a record level in September, according to BCA’s latest data.
The Pulse report for last month shows fleet/lease values increased by 1.3% to reach £10,017, the highest point on record. Retained value against original MRP (Manufacturers Retail Price) improved to 42.65 in September from 41.7% in August. Year-on year-values were up by £317 (3.2%), with age falling by one month and mileage down by 3,000.
The headline average value of a used car also set a new record value for the third month running; up by £34 to £8,376. Year-on-year, the headline figure was up by £674, equivalent to an 8.7% increase in average values.
Simon Henstock, BCA chief operating officer UK remarketing, commented: “September saw demand keeping pace with supply, with both the auction halls and online channels being very busy. Sale conversion rates were high, typically exceeding 80% during September, meaning there was good churn in the marketplace.”
“However, by mid-October our dealer customers were anecdotally saying that retail demand was softening and that will inevitably impact the wholesale sector. Professional buyers will inevitably become more choosy, cherry-picking the best presented and most attractive cars. It is critical to appraise and value vehicles appropriately and in line with condition, and invest in the appropriate level of preparation to attract the buyers’ attention where necessary.”