BCA reports slight fall in used car values
13 August 2018
Author: Sean Keywood
The average value of used cars fell slightly during July, according to auction firm BCA.
It says values fell month-on-month by $178, or 1.8%, to £9,463. However, year-on-year this was still a rise of £501, or 5.5%, despite a rise in the average age and mileage of cars sold.
Having reached a record level in June, the average value of fleet and lease cars fell month-on-month by £97, or 0.8%, to £11,101; that is a year-on-year increase of £615 or 5.8%, with average age rising and mileage declining - although both by small margins.
Average dealer part exchange values rose month-on-month by £33, or 0.5%, to £5,033, meaning the sixth consecutive month of record values in this sector.
Year-on-year this meant a £406 or 8.7% rise, with age and mileage of cars sold decreasing.
Values for nearly-new vehicles increased month-on-month by £1,967, or 8.7%, to £24,377 - a year-on-year rise of £5,616, or 29.9%. Although BCA cautions that the effect of model mix and availability is significant in this sector due to a very low volume of cars involved.
BCA COO for UK remarketing Stuart Pearson said: "It was no surprise that demand from professional buyers softened slightly as the hot weather and holiday season began, but overall market activity continued at very healthy levels in July.
"Buyers focused more attention on cleaner vehicles that could be retailed more quickly, with poorly presented, damaged or incomplete examples needing to be sensibly valued to sell first time.
"While fleet and lease values fell marginally, taken in the context that this was from record levels in June, and we are in the peak holiday season, it demonstrates the strength in depth across the used car market.
"Underlining this, dealer part exchange stock posted the sixth consecutive month of record values at BCA and nearly-new values hit one of the highest points on record."