Pressure grows on used fleet values
18 August 2011
The fleet and lease sector came under price pressure at used car auctions in July, according to the latest Pulse report from BCA.
Average used car values declined, which the auctioneer said was typical during the holiday season, as demand for older, lower value part-exchange models increased.
Fleet values continued on the downward trend that has now extended to six months since the January peak.
Values in the sector are now 10.5% lower than at the start of the year, while month on month, values fell by £71 (1%) to £7000 in July. Cap performance improved by over a point to 95.98%.
Year-on-year fleet values were down by £180 (2.5%) last month. In line with market sentiment, sold volumes were lower than in June.
Used values across the board fell by a marginal 0.5% to £5633 month-on-month in July but were 2.6% behind the same month in 2010.
Sold volumes dropped back 5.5% compared to June and performance against Cap clean was up a point to 95.6%.
BCA communications director Tony Gannon said that while the economic climate was a cause for concern it was not unusual for values to fall back in the peak summer months.
"There are some pressures in the market place and conversion rates remain fragile," said Gannon.
"We expect the market to remain steady during August but will be looking for activity to increase in the wake of the September plate-change."
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