Average values continued to increase in the used car market according to BCA’s latest report, as October achieved the second highest monthly average value on record.
The year-on-year figures also showed a substantial rise over last year (2012), underlining the on-going value evolution in the used car market.
The increase is largely the result of the on-going shortage of good, retail quality stock that is creating a very competitive trading environment and BCA’s remarketing centres nationwide once again reported strong demand from professional trade buyers.
October values rose by £167 (2.4%) in comparison to September, and were up by £693 (10.6%), year-on-year. Average mileage continues to fall — down by around 2200 miles compared to last year — while average age was marginally lower at 61 months. Average performance against CAP Clean is 0.3% up, year-on-year.
Fleet & lease values continued to average more than £9000 and remain significantly ahead year-on-year. Dealer part-exchange values rose to yet another new record level, climbing by £80 compared to September and are also substantially ahead year-on-year. Nearly new values climbed largely as a result of a change in model mix.
“October proved to be another exceptionally strong month at BCA, with an overall sales performance that was well ahead year-on-year,” Simon Henstock, BCA’s UK operations director said. “Average values continued to rise”
“With volumes rising, particularly from dealer/PX sources, there was some pressure on conversion rates, but strong buyer demand meant that average values continued to rise.
“Fleet cars remain in relatively short supply, however, and there is plenty of competition for any vehicle in ready-to-retail condition.
“While many buyers continue to focus on smaller and more economical cars, demand remains right across the board up to late-plate prestige and luxury marques.
“Significant results were recorded in a number of Top Car sales across the group during October, underlining that buyers are quite happy to invest six-figure sums for the right vehicle and highlighted by the £127,000 paid for a 2012 McLaren MP4-12C at Blackbushe.
“Convertibles are starting to show some seasonal decline in values, which is typical for this time of year, while, in contrast, the 4×4 sector is starting to pick up. In fact, some shrewd dealers are buying 4x4s now in anticipation of demand rising sharply in the coming weeks.”
Fleet & lease cars averaged £9138 in October, the second highest value on record. Values fell by £44 (0.4%) compared to September, but were up by £762 (9.1%) year on year.
CAP performance fell back from last month to 96.25% but was broadly static year-on-year. Retained value against original MRP (Manufacturers Retail Price) fell by half a point to 42.58% across the fleet & lease sector at an average of 39.4 months and 44,659 miles.