BCA’s Pulse report for April showed average used car values rose for the six consecutive month.
Average auction values increased to £5,641, a rise of £59 (1%) over March, suggesting the market is beginning
to settle. Year-on-year, April 2009 values were 4.3% (£235) ahead of last year’s £5,406.
It is the second month running that the year-on-year figures have shown growth. Stock levels remained relatively low.
CAP increased values by 8% in real terms and BCA’s figures duly fell from 103.3% to 97.5%.
With the market averaging a 1% value rise in April, the fleet and lease sector was the biggest winner with values up £260 (3.9%). Average part-exchange values improved by £33 (1.4%).
Nearly-new values, however, fell by £2,422 in April (-15.5%) follow-ing a £600+ rise the previous month. This is the third lowest figure in a year, with the lowest two being recorded at last summer’s crash.
The scrappage announcement in the Budget, combined with some attractive retail initiatives, is aimed at stimulating new car sales and is likely to affect nearly-new in turn. If the net impression is that new cars are ‘cheaper’, nearly-new values may adjust accordingly.
Parker's Hot Tip
A little confidence seems to be returning to the 4x4 market and some of the larger models represent a decent return. Nissan’s first-generation Murano looks like a premium vehicle, is loaded with kit and is rare.
However, earlier average-mileage vehicles are selling at auction for less than £10k, while a customer would probably be prepared to pay about £12,000.