AVERAGE used car values continued to rise in September, according to BCA’s latest Pulse report.
BCA’s remarketing centres reported strong demand and a significant upturn in conversion rates during September, while fleet, lease and dealer part-exchange values reached record levels.
Stock remained relatively short last month due to much of the volume from the September plate change not impacting the market until early October.
Across the board, used car values averaged at £7,007 in September, down by 0.4 per cent compared to August, but up by 10.9 per cent year-on-year.
BCA says the fall in headline value last month was a result of a small change in the mix of cars sold, as a greater percentage of dealer part exchange cars were sold in September compared to relatively higher value stock from fleet and lease sources.
Fleet and lease values rose above £9,000 for the first time on record and remain significantly ahead year-on-year. Meanwhile, dealer part-exchange values rose to a record level and remain ahead year-on-year after three consecutive monthly falls.
As a result of the change in model mix, nearly new values fell largely.
Average mileage is down by around 1,500 miles compared to last year, while average age remained the same at just under 63 months. Average performance against CAP Clean is 0.6 per cent up, year-on-year.
BCA’s Simon Henstock, said: ‘September proved to be an exceptionally strong month at BCA, with a string of 100 per cent conversions, high average values and an overall volume sales performance that was well ahead year-on-year.
‘There has been a growing sense of general economic optimism over recent weeks and that feel-good factor has definitely been apparent in the wholesale used car markets. Availability of good retail-quality stock will remain critical, however, if dealers are to meet the needs of their customers.
‘There is no doubt that the volumes generated back into the used sector from the September plate change will rise during October and, while this means more choice for buyers, it will inevitably put some pressure on average values and conversion rates during the weeks ahead.’
He added: ‘We are already seeing an upturn in the supply of dealer part-exchanges at BCA, reflecting reports that retail sales have been strong in recent weeks. However, supplies of fleet and lease vehicles are likely to remain constrained, a consequence of the reduced new car sales to the business sector following the onset of the financial crisis in 2008.’
