We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time
The start point for the best source of fleet information |
Used car values are still holding fast despite warnings by some trade experts that prices are in for a fall.
Auction giant BCA reported that October saw the second highest second-hand car values since 2005, with prices up 2.4% compared with September and a 10.6% increase year-on-year.
Operations director Simon Henstock said: "Fleet cars remain in relatively short supply and there is plenty of competition for any vehicle in ready-to-retail condition, which is keeping values high."
BCA said ex-fleet and leasing vehicle prices averaged over £9000 in October and cited a shortage of good stock as the driver for high prices.
Valuation specialist Cap agreed that quality used cars were in short supply. Senior editor of Black Book Live Derren Martin said: "Because retail demand remains good for the time of year, dealers are therefore reluctantly buying [poor condition] cars and absorbing the cost of reconditioning them.
"Retailers still need to fill their forecourts, so buying those older cars has become a reluctant necessity."
Martin warned that the market may be in for a "soft landing" towards the end of the year though, and noted a surplus of cars over four-and-a-half years old.
Rival valuation firm Glass's, revealed the Ford B-max as the fastest-selling used car of the moment, with an average of 32 days to sale, followed by the Land Rover Discovery at 34 days.
At the other end of the spectrum was the Lexus CT200h with an average 72 days to sale and, at the very bottom, the Mercedes R-class at 139 days on average.
Chief car editor Rupert Pontin said: "Of specific concern. are the Mercedes models, which historically have been much hotter property. In particular the S-class [76 days to sale] which, whilst widely acknowledged as one of the best cars in its sector, there are numerous examples of these in the used car market at present, and more than the market can readily absorb.
"A product young in its lifecycle, such as the Ford B-max, or in one of the newer niche markets, such as the Kia Sportage or Hyundai ix35, make better sense."
BusinessCar magazine ©2019
Business Car Magazine © 2020 | Business Car is part of NS Media Group.
