Tougher times for fleet & lease values
Average fleet values fell by £276 in July, equivalent to a drop of 3.7%. With model mix very similar to last month, this was a reflection of softer demand as average prices fell in two of the three main product sectors. Despite this, sold volumes actually increased by just over 1% in July compared to June.
Premium fleet models fell by £417 (3.8%) from £10,866 to £10,449, while volume models dropped from £5,509 to £5,425 – a decrease of £84 or 1.5%. Volume values have been showing a modest decline since April when they peaked at £5,835. In contrast, budget fleet/lease car values rose from £3,172 to £3,359, a substantial 5.8% increase – with the caveat that numbers are low in this sector and model mix has a disproportionate effect on value.
Year-on-year comparisons show average fleet & lease values behind by £196 (2.6%), with CAP performance down by more than six points.
Looking at overall average used car values, July was relatively static, with overall volumes, model mix and demand levels similar to those seen in June. The average used car value at BCA recorded a modest decrease in July, from £5,802 to £5,784 – a fall of just £18 or a quarter of 1%. Performance against CAP Clean increased marginally from 94.68% to 94.83%.
BCA communications director Tony Gannon commented: 'Prices have continued to be under some pressure in July, especially in the fleet & lease sector, but sales volumes have held up well in the month, and demand is there for vehicles that are valued in line with their condition and market expectations. Although we have not experienced seasonal patterns in the market for some time, we are seeing them now and should expect these to continue over the rest of this year.'For more of the latest industry news, click here.