BCA’s Pulse report shows average values rose in January, with part-exchanges reaching a record high.
Fleet values increased sharply by £504 (6.9%) to £7,739, completely reversing the steep losses experienced in October and November. Year-on-year values are ahead by £480 ( 6.6%).
The part-exchange sector climbed for the third month running even as sold volumes increased by some 83% over the month.
Values rose by £132 (4.8%) to £2,837 in January to reach the highest value on record for part-exchange cars, improving on the previous high point of £2,762 in September 2009.
The nearly-new sector saw values fall sharply, as sold volumes almost doubled between December and January to lead average values to drop from £21,691 to £17,619.
The fall in nearly-new values, combined with the much-changed model mix over the month had the net effect of slowing the growth in the overall average value.
Despite increases of nearly 7% and 5% for fleet and part-exchange vehicles, the average used car value at BCA in January rose by just £69 (1.1%) to £5,974.
Sold volumes increased significantly in January compared to December, rising by 72% – more than 10%, year-on-year.
BCA’s communications director Tony Gannon said it was no real surprise to see values strengthen in the January to Easter period.
However, volume will strengthen from late March and the Easter week and Royal Wedding will effectively disrupt a week of trading.
“This is a particularly important consideration for volume sellers which could see demand slowing, just when volumes are rising.”
Gannon added “With new car sales remaining under pressure used car activity remains the best profit opportunity for most dealers.”