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BCA reports 1% used car values decline in October

BCA Pulse report, October 2018

BCA has attributed a 1% slip in used car values during October to a shift in model mix amid increased volumes of ex-fleet and dealer part-exchange vehicles at auction during the month.

Overall average values declined by £98 to £9,783, which remains the third highest level on record with the auctions specialist in a market which has seen increasing demand for used car stock drive up prices.

The month’s average – accompanied by an increase in average mileage from 48,145 to 49,047 – was 4.4% on the £9,364 average recorded in the monthly BCA Pulse report on October last year.

BCA Pulse stated that part-exchange and ex-fleet and lease vehicles did reach new record values in their own right last month, however.

Fleet and lease values have reached record levels six times this year, it stated, while record values for dealer part-exchange cars have been set for nine months in a row.

Stuart Pearson BCA’s chief operation officer for UK Remarketing, said: “October was another record breaking month at BCA, with average values for fleet and lease cars and dealer part-exchange vehicles continuing to rise. 

“The used car sector remains a highly competitive environment with professional buyers bidding strongly across the range of stock on offer at BCA. 

“Even with the usual seasonal distraction of the half-term holidays towards the end of the month, values remained on a high with the best retail quality cars typically outperforming guide expectations by a significant amount.”

He added: “As we approach the end of 2018, many dealers are starting to focus on building stock levels in readiness for the typically busy first quarter of the New Year.”

Record performance for the ex-fleet and lease sector saw an increase of £31 month-on-month, to £11,902. 

BCA reported that the retained value against original MRP (Manufacturers Retail Price) was steady at 45.32% as year-on-year values improved by £1,046 or 9.6%, with age rising from 38.14 to 38.94 months and mileage falling from 40,486 to 38,521.

Average dealer part-exchange values improved sharply at BCA in October, rising by £204 (4%) to £5,335. 

Year-on-year values were ahead by £595, representing a 12.5% increase over the 12-month period with age decreasing from 88.42 to 87.30 months and mileage falling from 70,593 to 68,147. 

Values for nearly-new vehicles fell back for the first time since March, meanwhile.

A figure of £23,688 was still the fourth highest this year and a substantial £5,835 (32.6%) ahead of the same month last year.

The BCA Pulse report said that, as ever, the effect of model mix and availability is significant in the “very low volume sector”.  

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