Used car market improves despite average price falls

BCA’s Pulse report shows that average used car values decreased in January, following an increase in December, but once again this was largely due to a change in model mix.  Average values actually rose in the fleet/lease and part-exchange sub-sectors, with values broadly flat in the nearly new market.

The overall average value for cars sold in January was £5,939  – a month-on-month decrease of £249 (4.0%) compared to December’s figure of £6,188.  CAP performance improved by over one point from 96.11% in December to 97.39% in January.

Values remain well ahead year-on-year by £803 (a 15.6% increase), although this disparity is beginning to reduce as values are now being compared to the recovering marketplace of 12 months ago.    

Despite the four percent decrease, average values actually rose in two of the three main product sectors:

Fleet & Lease values rose by £234 to £7,259 (up 3.3%) and Part-Exchange values increased by £120 to £2,669 (up 4.7%).   Nearly-New values meanwhile were virtually flat at £17,837 – down by just £62 or a third of one percent. 

Model-mix is therefore largely to blame for the drop in the overall average value, with fleet/lease volumes up nearly 17% and part-exchange numbers rising by a significant 45% compared to the much shorter trading month of December.  In contrast, nearly-new volumes actually fell by 2.5% in January.

BCA’s Communications Director Tony Gannon commented “The January uplift in the fleet/lease and part-exchange sectors suggests the market is aligned to more traditional patterns.  The continued demand for lower cost motoring is also evident; with the biggest percentage rises seen in the fleet/lease and part-exchange budget sectors.”