BCA’s monthly Pulse Report has revealed that used car volumes rose ‘significantly’ in January as average values returned to more typical levels following the seasonally affected values recorded during December.
The remarketing specialist said that last month’s headline average used car value of £9,476 was £178 year-on-year, equivalent to a 1.9% improvement despite increases in both average age and mileage.
The increased values reflect both the richer mix of cars available at BCA over the past 12 months and the substantial levels of demand experienced this January, it said, with fleet and lease and dealer part-exchange values increasing by 8.9% and 8.7%.
Nearly-new values were up by 16.7%.
BCA’s chief operating officer for UK Remarketing, Stuart Pearson, said: “The used car sector has started the year strongly, with competitive bidding across the board from high value prestige stock to older, higher mileage budget vehicles.
“January 2019 values followed the pattern seen in previous years and BCA expects to see strong and sustained demand as we approach the March plate change.
“We are delivering an enhanced sales program across our nationwide network to support this.”
The BCA Pulse Report showed that used vehicles from the fleet lease sector achieved an average value of £11,453 during January, one of the highest monthly values on record and ahead of the same month last year by £940 (8.9%).
The retained value against original MRP (Manufacturers Retail Price) improved by 2ppts to 44.07% compared to 2018.
Average age at time of sale has risen slightly to 39.47 months, with average mileage falling by over 2,000 miles compared to January 2018.
Dealer part-exchange values averaged £5,116, up by £413 year-on-year, equivalent to an 8.7% increase.
Values have remained strong since rising sharply in October of last year and reflect the quality of the business BCA has won and retained in this sector, the report said.
Average age and mileage decreased slightly compared to 2018.
BCA Said that sustained demand for nearly-new vehicles had continued into 2019, with values averaging £22,985 during January and strong competition for stock across the board.
Values were up by £3,305 (16.7%) compared to January 2018.
Model mix has a significant effect in this very low volume sector, with brand specific winners and losers.