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Values fall as volumes rise

BCA’s latest Pulse report shows that the headline average monthly used car value declined by 7% in April compared to March, although year-on-year values were up by over 16%.  

Changing model mix combined with increasing volumes was largely responsible for the month-on-month decline.

Across the board used cars averaged £6,502 last month, down by £498 compared to March, but significantly ahead of April 2012 by £903 (16.1%). 

Average values have declined for four consecutive months since the record of £7,361 established last December. 

Fleet and lease values fell back for the second consecutive month, but remain significantly higher than they were a year ago.  

Dealer part-exchange values climbed to a new record level, while nearly new values fell, largely thanks to a change in model mix.

Simon Henstock, BCA’s UK operations director, said “Post-Easter, buyer demand has weakened and stock availability has improved with the inevitable result that there has been some pressure on values and conversion rates.

“That said, we are still seeing plenty of interest in well-presented retail quality vehicles and here values continue to outperform price guide expectations.

“The stronger demand at the budget end of the market continues, meanwhile, and values for dealer part-exchange vehicles continue to rise. 

Some of this value growth is undoubtedly a result of BCA securing a number of key remarketing agreements with prestige dealer groups in recent months.”

Fleet and lease cars averaged £8,592 in April, a fall of £142 (1.6%) compared to March. CAP performance fell quite sharply to 94.7% (from 97.6% the previous month), reflecting that price movements had outstripped the guide expectations. 

Retained value against original MRP (manufacturers retail price) fell slightly to 42.05% across the fleet and lease sector at an average of 40 months and 45,500 miles. 

Year-on-year, the fleet and lease sector recorded a significant £952 (12.4%) uplift. 

Average age and mileage were virtually static month-on-month, but down year-on-year.
Demand remains high at the budget end of the marketplace and average part-exchange values remained above £3,500 for the fifth month in a row. 

Values improved by £30 (0.8%) to £3,595 in April although CAP performance fell to 93.4% from just under 95% in March. 

However, year-on-year values were ahead by £783 – a significant 27.8% up on April 2012 and the highest year-on-year uplift recorded in the dealer part-exchange sector. 

Average values fell in the nearly-new sector in April to £19,663 from £21,075 in March, with performance against CAP Clean falling by nearly two points to 98.7%. 

Nearly-new values will always be affected by changing model mix in this low volume sector.

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