Used car values climb again in September at BCA
There is further proof that the used market is settling back into a more typical seasonal pattern as BCA’s latest Pulse report shows that average used car values climbed in September. Although the average rise over August was nominal – values across the board increased by just £33 – there was a significant rise in values in the fleet & lease sector, with more modest increases in part-exchange and nearly-new values over the month.
The average used car value at BCA climbed to £5,938 in September from £5,905 in August - equivalent to just over a half percent increase over the month. Performance against CAP Clean increased by over two points to 98.34% - the third highest figure recorded this year.
The figures come against a backdrop on a new car market that is continuing to slow, with September falling 8.9% to 335,246 units – the second lowest volume for the month since 1999 when twice yearly registrations were established. According to the SMMT, private demand fell again in September, but fleet demand posted solid growth.
BCA’s UK Operations Director Simon Henstock commented “Although September has not seen the big value rises that were typical of the pre-recession era, much of that was due to August being so strong, with many buyers seeking to acquire stock ahead of the anticipated September rush. Even so, prices did improve and the month saw a good level of interest from professional buyers, with conversion rates continuing to climb for many vendors. Sold volumes increased by around 4.5%, with much of that increase coming from the part-exchange sector.”
“With new car sales continuing to be slow, dealers are looking to used cars to deliver profitable retail opportunities. Demand remains high for cars in good, ready-to-retail condition and values for the best examples can outstrip guide expectations by hundreds or even thousands of pounds.”
Fleet & Lease by Sector – August & September 2010
Fleet & lease values increased in all three sub-sectors, suggesting that demand was broad-based and it was the product profile itself that was attracting the buyers.
Volume fleet & lease values improved by nearly £300 to £5,714, equivalent to a 5.4% increase with CAP performance improving by over 2.5 points. Budget fleet/lease car values rose even faster, with £676 added over the month, equivalent to a significant 19% increase, with CAP performance increasing by nearly five points – the caveat as always that numbers are low in this sub-sector and model mix has a disproportionate influence on value.
Premium fleet models also increased in value from £10,808 to £11,077– a £269 increase equivalent to a 2.4% rise and the second highest value recorded in the past year. CAP performance outstripped Clean for the first time since March of this year, and at 100.77% recorded the highest figure since September last year.
Part-Exchangeby Sector – August & September 2010
Part-Exchange stock posted a modest 1.2% value increase – rising from £2,579 to £2,610 – recording an improvement of £31.
Most of the value growth was seen in the Premium car sector, where values improved by £93 to £4,532, equivalent to a 2% rise. CAP Clean percentage performance improved again by over 1.5 points, reaching nearly 96% in September. Year on Year values are behind by £264.
For the second month running, the Volume P/X sector recorded a small percentage increase over the month, with a £16 rise equivalent to a sub-1% improvement in average values. CAP performance increased by around 1.5 points, to sit at a healthy 92.8% considering an average age of 7.4 years and 71,000 mileage. Budget values fell sharply by £140 (9.7%), but as always numbers are slim and model mix will have had a major influence.
Nearly-New by Sector – August & September 2010
Nearly-new values increased from £18,982 to £19,410, the £428 rise equivalent to a 2.2% improvement over the month. Volume values improved by £197 to £10,617 (up 1.9%), while premium nearly-new car values improved by a relatively nominal £85 – a third of one percent. The £300+ uplift in Budget nearly-new values was entirely due to model mix in this thinly populated sector.
