BCA’s May Pulse report shows average used car values climbed 2.9% to £5,790 as the market recovered from the disrupted trading patterns experienced in April.
The bulk of the recovery was felt in the dealer part-exchange sector, while fleet/lease values fell for the fourth consecutive month and there was also a decline in the nearly-new sector.
Sold volumes increased by 9.2%, month on month and sale conversions also saw a modest recovery. Performance against CAP Clean improved by around one and a half points to 94.5%.
Year-on-year, May 2011 is £134 (2.3%) ahead of the same month last year BCA’s communications director Tony Gannon said: “May had the feel of a typical late spring/early summer marketplace, with some price pressure, but lots of interest for the most desirable vehicles.
"Conversions have improved and supply and demand is reasonably well balanced.”
“What we are seeing is normal seasonal patterns for this time of year and we are not expecting any real growth in supply this side of the next registration plate change in September.”
Fleet values continued to fall for the fourth straight month, but this is largely a reflection of the market peaking early in January and slowly declining from that high point ever since.
Values fell by less than 1% to £7,349 in May. Sold volumes improved by 21% compared to April, broadly returning to where they were in March.
The part-exchange sector recovered after three consecutive months of falling values, rising from April’s low-point of £2,668 to reach £2,746 – an increase of £78, equivalent to a 2.9% improvement.
Year-on-year figures are ahead by £127 (4.8%).
The nearly-new sector saw values fall 3% to £19,021, caused mostly by model mix changes.