BCA’s Pulse report for May showed that average used car values had risen for seven consecutive months. Average values in May were 2.3% higher than in April and 5.7% ahead, year-on-year.
In May, average auction values increased to £5,773, a 2.3% rise over April’s figure. Year-on-year, values are £311 ahead. Fleet cars rose by 2% to break through the £7,000 barrier for the first time since 2007.
Part-exchange values improved by 1.9% to £2,360 while nearly-new average values improved by £1,500 to £14,692, although this was mainly driven by model-mix.
Despite the continued monthly price rises, average growth appears to be slowing, following some spectacular increases earlier in the year. Easter last year heralded the beginning of a price slump that was to last until October – there are no signs that such dramatic price swings are waiting in the wings in 2009.
Stock remains at relatively low levels and, faced with a more limited choice, yet with continued demand from retail customers, dealers have had to pay more in May.
and sale conversions as a result have been strong.
Parameters have changed very little over the past 12 months, although cars sold in May 2009 average one month younger and 1,600 miles less travelled than those sold in the same month in 2008. Performance against CAP is nearly six points higher in 2009 however at 98.54%.
BCA communications director Tony Gannon said: “Despite the market now heading into what is traditionally the quietest time of the year, signs suggest that average prices will be maintained at this higher level – at least while supplies of vehicles are relatively thin in the wholesale market.”