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Nearly-new values rise, says latest BCA report

Values in the nearly-new sector rose again in the last quarter of 2005 to record their highest figure for two years, according to the latest BCA quarterly review of the wholesale market.

However, total volumes fell 12.9%, according to rival Manheim’s analysis.

Average value was up £628 compared to the third quarter of 2005, a 5.5% increase, while year-on-year shows a 10% rise, equivalent to £1,091. BCA puts the increases down to a changing model mix along with strong demand from buyers.

Part-exchange values also increased in the fourth quarter, recording the second highest figure in the last two years. Both age and mileage were marginally lower than the previous quarter and these factors no doubt helped towards the £167 increase in value.

However, the fleet and lease market lost a little value in price achieved versus guide price, but was ahead year on year. Prices for the three-year-old, 60,000-mile car averaged £6,254, a fall of £54 against the previous quarter, but up £486 year on year, a rise of 6.5%.

“If private buyers keep out of the new market, and nearly new values remain firm, we expect the three-year-old market to continue to be strong,” says Tony Gannon, BCA commercial strategy and communications director.

Manheim’s report paints a more pessimistic picture, claiming little change in sales values last year. The percentage against original cost new stays at the lowest recorded level of just over 36% in Q4, while the overall annual performance fell 2.2% on 2004, at 37.4%.

Manheim says some car-makers have excess new car stock left from 2005 that will have to be pushed into the market, placing more pressure on nearly-new values this year.

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