Used 4x4 values firm despite new tax

New data from BCA (British Car Auctions) shows the higher taxes for more polluting vehicles in the last Budget have had little effect on prices. Data analysed to the half-year point for 2007 shows that values are ahead of last year and confirm that worries about a price meltdown are unfounded.

Tony Gannon, BCA’s Communications Director commented “While a rise to £300 for the annual Road Fund License for the most polluting vehicles sounds substantial, it is a minor factor in the overall value of most premium 4x4 models. Price movements seen in the sector are very much in line with prevailing market conditions, and in reality average values are ahead, year on year.”

Gannon added “Some buyers are also confused whether or not the new tax will apply to their 4x4. This will depend if their vehicle falls into Band G for the highest emissions and only applies if their vehicle was registered as new after 23 March 2006.”

While leaked information about the Chancellor’s intentions appeared in early March, there appears to have been little or no effect on prices in the used 4x4 market.

BCA’s composite figures across a wide range of 4x4s at every age and mileage sold this year show that first quarter values peaked in February at £8,159, around £800 ahead of 2006. While values fell from this highpoint in March, April and May 2007, only the April figure of £7,625 was behind last year. Average used values rose sharply in June reaching £9,098 as a number of desirable, high-value latest models from the manufacturers hit the used market.

As a comparison, average values for fleet and lease cars – very much the barometer of the used car industry – fell in February and May, but climbed in March, April and June.