Used car values rise in October
The October average figure of £6,481 is the highest figure on record since Pulse began reporting in 2005. The increase is largely the result of the on-going shortage of good, retail quality stock that is creating a very competitive trading environment. This year, average values have risen by nearly £900 across the board since the April low point of £5,599.
For the second month running, there were value rises in each of the individual product sectors, although these rises appear to be slowing in the bigger volume sectors.
Average fleet & lease car values improved by just £37 (0.4%) compared to September, but this was enough to create another new record monthly value of £8,376 – the sixth consecutive month that a record value has been established. Year-on-year, the fleet & lease sector again posted double digit improvements, the fifth month in a row this has happened.
Average part-exchange values increased by £38 in October, representing a 1.2% increase over September to reach another record average value. The low-volume nearly-new sector posted a significant 9.4% value improvement.
BCA UK Operations director Simon Henstock, commented: ‘While the headline values continue to move upwards, we have experienced some pressure in the used car market in October. Sale conversion rates faltered during the month as volumes rose compared to September and buyer demand remained firmly focused on the best quality Condition 1 and 2 vehicles. Those retail quality cars are making often exceptional prices, but cars in poorer condition need to be sensibly valued if they are to attract the buyers attention.’
Fleet & lease cars averaged £8,376 in October, up by just £37 (0.4%) compared to September but enough to establish another new record monthly value. CAP performance fell by two points to 96.33% compared to September, with average age falling and mileage rising. Performance against original MRP (Manufacturers Retail Price) fell by half a point to 41.44% across the fleet & lease sector.
Year-on-year, the fleet & lease sector recorded a significant 14.9% uplift, which means year-on-year comparisons have recorded double digit improvements for five months consecutively.
Average part-exchange values continued to rise in October, climbing by £38 (1.2%) to £3,151 to establish another highpoint. Values compared to CAP Clean were down by over two points at 93.16%, while average age and mileage fell slightly over the month. Year-on-year, values were ahead by 14.0%, with age and mileage rising marginally over the period. The October 2012 CAP figure is just 0.02% lower, year on year.
Average values in the nearly-new sector improved by 9.4%, month-on-month, to reach £21,601. Average performance against CAP Clean fell slightly to 100.6%. Nearly-new values will always be affected by changing model mix in this low volume sector.