Average used car values rose by 1.9% or £154 month-on-month in July, according to the latest figures from BCA.
Year-on-year, values continue to increase with the average value of a car sold by BCA in July 2015 up by £206 (2.6%), compared to July 2014.
Average values for dealer part-exchange cars fell slightly by £10, but at £4,268 were the fourth highest ever recorded by BCA. Average nearly-new values improved by nearly £900.
Average values for dealer part-exchange cars fell slightly by just £10, but at £4,268 were the fourth highest ever recorded by BCA. Year-on-year values remain ahead by £203 (4.9%), with CAP Clean performance ahead by nearly two points compared to a year ago.
Nearly-new values improved to £21,250, the highest average monthly value since January this year. Model mix has a significant effect in this very low volume sector. CAP Clean performance imporved slightly to 99.57%.
Simon Henstock, BCA’s UK operations director, said: “Supply and demand remain well balanced, with conversion rates improving in July, despite the typical summer slowdown the market experiences once the summer holiday period begins.
“Sales have been well attended throughout the auction network in July and online bidding has been strong, but it is noticeable that buyers are being more selective.
“Condition, preparation and presentation is important and it is worth considering SMART repairs for those cars that have suffered low level cosmetic damage in the shape of car park dents, stone chips and damage to alloy wheels.”
Henstock said sellers have generally been receptive to market sentiment in July, setting sensible reserves that have seen sale conversion rates at “healthy levels”.
He said: “There is little to be gained by over valuing cars, particularly when there is increasing competition for the buyer’s wallet.”
BCA average used car values year-on-year
Fleet and lease cars averaged £9,662 in July, remaining at near record levels for BCA, as they have done for most of 2015, despite falling by £65 (0.6%) compared to June.
The past six months have recorded the six highest average monthly values on record for the fleet and lease sector. Retained value against original MRP (manufacturers retail price) fell marginally to 41.69% over the month, with age and mileage broadly static.
Average values were up by £251 (2.6%) compared to July 2014, with performance against CAP Clean up by a point and retained value marginally down on 2014.