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Fourth month of record used car prices at BCA

BCA Pulse, December 2017

BCA recorded its fourth consecutive record month of used car prices in a monthly Pulse report which showed values had risen by £465 to £9,868 during December.

The headline figure was up by £1,527 year-on-year – equivalent to a substantial 18.3% improvement – as buyer demand remained “consistent throughout the month”, according to BCA managing director of UK remarketing, Stuart Pearson.

"December is the shortest trading month of the year and both the market sector mix and model mix tend to change quite significantly,” he said. 

“Fleet and lease stock is typically in more limited supply, whilst dealers continue to sell part-exchange vehicles as a result of their ongoing retail activity.

“Buyer demand was consistent throughout the month and carried on to BCA’s digital platforms over the Festive Season.”

BCA’s Pulse report stated that December’s shorter trading period saw some pressure on values for poorly presented vehicles. 

Average values for fleet/lease vehicles remained strong, while dealer part-exchange values reached record levels, reflecting the longer term trend BCA has been reporting throughout 2017. 

Nearly-new vehicle values also improved during December.

Average values remained at near record levels in the fleet and lease sector, with the December figure of £10,604 representing a small decline (0.3%) against November.   

Retained value against original MRP (Manufacturers Retail Price) was 41.85% in December. Year-on-year values were up by £939 (9.7%), as both average age and mileage continued to reduce. 

Average dealer part-exchange values climbed by £71 (1.5%) to reach a new record level of £4,773 in December.

Once again, looking at the longer trend, BCA’s part-exchange values have climbed steadily during 2017, reflecting the substantial levels of business BCA has won and retained in this sector. 

Year-on-year values were ahead by £278, equivalent to a 6.1% uplift. 

Values for nearly-new vehicle values rose in December, from £18,445 to 19,033, an increase of £588 and the second highest average value recorded in this sector by BCA during 2017. 

The BCA Pulse report said: “Model mix has a significant effect in this very low volume sector, with brand specific winners and losers.”  

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