9:34 pm, March 11, 2011
BCA says average values rose marginally in February, largely due to a richer model mix in the nearly-new sector.
Their Pulse report shows that values across the board increased by just £11 compared to January’s figure to reach £5,985 and are at the highest point recorded since December 2009.
Performance against CAP Clean dropped by over a point to 97.4 per cent, down from the 98.6 per cent achieved across the board in January. Year-on-year, February 2011 is ahead of the same period last year by just £26 – less than half of one per cent.
However, values came under pressure in both the bigger volume sectors, says BCA. Fleet & lease values fell on average by £186 (-2.4 per cent) while the part-exchange sector fell by £39 (-1.3 per cent). In the more volatile nearly-new sector where mix is critical values improved notably over January, rising by £2,208 (12.5 per cent).
With entries rising and demand softening, conversions have come under increasing pressure in February.
BCA says they saw nearly-new sector values rising sharply, with over £2,200 added to the January figure to reach £19,827. Model-mix was largely responsible for the increase with sold volumes of higher-value premium cars increasing by nearly 20 per cent, while the number of volume models sold decreased by around 8 per cent.
BCA’s communications director Tony Gannon said: ‘Following a very strong start to the year in January, used car demand has eased off a little in February thanks to a combination of increasing volumes and a reported softening of retail interest in the past two or three weeks.
‘While that slowing in demand has yet to manifest itself in the overall average price – largely thanks to a changing model mix that saw a greater number of high value premium cars sold in February – it is likely that we will see more tangible evidence in the next few weeks as volumes start to rise in late March.
‘Although it is early days, we would expect to see defleet volumes ramp up in late March and this will possilbly result in some more price pressure in the fleet/lease used car sector.
‘Dealer part-exchange volumes will increase, but with continuing demand in the budget sector it is likely prices will remain relatively firm.’
