But any windfalls were short lived – valuation expert CAP says the market is beginning to swing back in buyers’ favour.
Prices achieved by BCA for de-fleeted cars versus guide price hit the highest point for 18 months in Q3, and hit used car dealers’ wallets accordingly. The nearly-new sector – up to two years – was active, despite an average fall in value of £275.
BCA’s figures, which go to form its Used Car Index for the wholesale market, are based on the thousands of cars sold through its halls every month from the direct fleet, contract hire and leasing sectors.
They show that in the third quarter of 2005, prices for average three-year-old, 60,000-mile car rallied to £6,308 – a rise of £134 or 2.1% over Q2.
And year-on-year, values are £339 ahead of Q3 2004, equivalent to a rise of 5.6%. Performance against CAP Clean by fleet and lease cars improved, on average, to 98.4%, a rise of two points and one point ahead of Q1 05.
But CAP Black Book senior valuation editor Tony Styles says the 3/60 market – from multiple disposal sources – is falling back. October data for 0202 shows 96.8% of CAP Clean and 0252 at 97.8%.
“We’ve seen no evidence of much above CAP Clean and there’s now a lot more stock coming on to the market,” says Styles. “This movement was quite strong last month. Data up to October 15, for instance, showed 0202 at 97.4% and 0252 at 98.5% - so both lost three quarters of a percent in the second half of the month.”