Average used car values reached a record high in July according to BCA’s latest Pulse report.
The headline average value of a used car rose by 1.4% to £7,706, ahead of June’s figure by £109. Average performance against CAP Clean improved marginally from 96.57% to 96.78%, while average age and mileage fell slightly compared with June.
Year-on-year, July 2014 was ahead by £831 or 12.0%, with both average age and mileage falling over the 12 month period. CAP Clean performance was up by nearly a point, year-on-year.
Average values declined in the fleet & lease sector for the third month running, although the fall was negligible at just £37 (equivalent to 0.4%), while values rose in the dealer part-exchange sector to a new record level. Nearly-new values also rose, although model mix has a significant effect in this low volume sector.
Simon Henstock, BCA’s UK operations director, said: “We are now well into the summer holiday period and the wholesale markets are generally quieter – however, this year volumes have remained relatively high and there is still plenty of competition for the best stock on offer.”
“The shortage of good quality fleet and lease stock continues, with volumes not expected to pick up until the second half of September.
"Cars entered from dealer part-exchange sources have typically outperformed the market in 2014 and July was no exception.
"Average values reached record levels, as dealers continued to supply the marketplace with well-presented, realistically valued cars to tempt the buyers in.”
“Sellers should consider adjusting valuations now on poorer condition cars with a view to remarketing them before volumes begin to rise and buyers have more choice from mid-September onwards.”