Fleet & Lease and Dealer Part-Ex average values at all-time high
Average used car values reached record levels in November as buyers competed strongly for the stock on offer. The headline average value of a used car increased for the second month running, rising by £327 (4.2%) to £8,075, with performance against CAP Clean averaging 95.2%. November’s average value beat the previous highest, recorded in August of this year.
Year-on-year values remained ahead by £586, equivalent to a 7.8% uplift, with both average age and mileage continuing to decline. CAP Clean performance was down by more than a point, year-on-year. Every month in 2014 has recorded a significantly higher average value compared to the same month in 2013.
Fleet & lease cars averaged £9,633 in November, a rise of £100 (1.04%) compared to October, while average dealer part-exchange values improved for the third month running to reach £4,188. Both sectors recorded the highest monthly average values since Pulse began reporting in 2005. Nearly-new values improved by 2.4% to £21,677, although model mix has a significant effect in this low volume sector.
Simon Henstock, BCA’s UK Operations Director commented “With many retailers anecdotally reporting reduced footfall in November, demand has softened somewhat as the year end approaches, which is very typical of the season. Balancing this, there remains a shortage of good quality, retail-ready stock and this is keeping the values of these premium vehicles on a high.”
“What we are seeing is the development of a two-tier market, where the best vehicles sell quickly for often exceptional values, while the less attractive or over-valued cars struggle to attract bids. If less desirable cars in unattractive colours, with a poor specification and needing paint and refurbishment are overvalued, there is every chance they will remain unsold, putting pressure on conversion rates. Volume sellers particularly need to pay attention to this and reappraise and revalue any vehicles that are proving difficult to remarket.”
Year-on-year table: All cars
Henstock added “Professional buyers will no doubt remember that average values rose very sharply last December due to the shorter trading month and the ongoing dearth of retail-quality stock, so there will be some interesting dynamics at play between now and the end of the year. In particular, independent non-franchised dealers and traders are often active during December to ensure they have attractive stock to tempt customers in the New Year.”
Fleet & lease cars averaged £9,633 in November, a rise of £100 (1.04%) compared to October – a record value that was just ahead of the previous highpoint recorded in April of this year. Despite this, CAP Clean performance fell slightly to 94.66% on average over the month. Year-on-year values were ahead by £332, equivalent to a 3.5% uplift. The retained value against original MRP (Manufacturers Retail Price) fell slightly at 41.70% when compared to October and was down year-on-year.
Year-on-year table: Fleet & lease
Average dealer part-exchange values improved to £4,188, reaching a new record value for the second month in a row. Year-on-year values were ahead by £331 (8.5%) with average age continuing to rise and mileage falling over the year. CAP Clean performance was down around a point compared to a year ago.
Year-on-year table: Part-Exchange
After two consecutive monthly falls, nearly-new values improved by £509 (2.4%) to £21,677 in November, although model mix has a significant effect in this low volume sector. CAP Clean performance fell slightly to 99.3%.
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