Used car values are continuing to rise as average auction values increase for the ninth month running.
Average values across the board reached £6,028 in July - a substantial £178 (3%) increase over June’s figure of £5,850 and breaking the £6K barrier for the first time on record, according to BCA’s Pulse report.
Year-on-year values are now £1,079 or 21.8% ahead of July 2008 – reflecting both that values were falling sharply this time last year, and that 2009 has seen sustained improvements in value.
Performance against CAP has risen for the third straight month and is again averaging over 100% of Clean values for all stock. This underlines that demand continues to outstrip supply.
According to BCA’s figures, in July average values for fleet & lease cars rose by £324 while average part-exchange values climbed by £136 and nearly-new values improved by a £745 – with a virtually identical mix of cars from the premium, volume and budget sectors as seen in June.
BCA’s communications director Tony Gannon said “Last month’s edition of Pulse suggested values were kicking on following a relative lull, and July certainly provides additional proof of that. Values have risen by nearly £400 over the rolling three-month period despite the market now entering a period where values have traditionally softened over the summer holidays.”
He added: “As last month, stock levels remain relatively low, and certainly behind typical levels for the current period in previous years. The vast majority of vehicles being offered are sold first time and conversion rates remain exceptionally high.”