7:01 am, August 9, 2013
THE average monthly used car value declined by 1.8 per cent in July, according to BCA.
The firm’s latest Pulse report showed the decline along with falling fleet and lease values and static dealer-part exchange values.
However, year-on-year values remain ahead, up by 11.2 per cent as good quality stock remains in short supply.
Across the board, used cars averaged £6,875 in July, down by £125 compared to June, but significantly ahead of July 2012 by £695.
Meanwhile, average mileage continues to fall and cars are one month younger when sold in comparison to last year. Year-on-year, average performance against CAP Clean is around one point down.
Looking at the fleet and lease values, results show they fell back slightly from June’s record value but remain significantly ahead year-on-year.
According to BCA, dealer part-exchange values were static compared to June, but also recorded a substantial year-on-year uplift.
BCA recommends that, although demand from professional buyers remains relatively strong, vendors should be valuing stock realistically as volumes will inevitably rise in the weeks ahead.
BCA’s UK Operations Director, Simon Henstock, said: ‘The summer holiday period is typically quieter in terms of buying activity in the wholesale markets, but that is being balanced by the on-going shortage of good quality, ready-to-retail stock.
‘Cars entered from dealer part-exchange sources have outperformed the market in recent weeks, because dealers are so close to the market and value their cars realistically to tempt buyers in. As in previous months, cars presented in grade one and two condition will typically make values well in excess of guide price expectations.’
He added: ‘However, vendors should beware of expecting a similar return for vehicles in poor or below average condition. Sellers should consider adjusting valuations now on poorer condition cars with a view to remarketing them before volumes begin to rise and buyers have more choice from mid-September onwards.’
