AVERAGE used car sold values fell in April for both used cars and commerical vehicles BCA’s latest pulse report shows.

Both volume sectors of fleet/lease and part-exchange cars experienced price falls in April, and sold volumes also declined month on month and conversions fell dramatically.

Values across the board fell to £5,626 in April, from the figure of £5,752 recorded in March – a £126 drop that was equivalent to a 2.2 per cent decrease – it’s the lowest monthly average value recorded since March 2009.

Year-on-year, April 2011 is £245 (4.1 per cent) behind the same month in 2010. Sold volumes fell by a significant 19.8 per cent compared to March, with the multiple Bank Holidays at the back end of the month having an effect on trading activity.

Performance against CAP Clean dropped sharply from the 95.9 per cent achieved across the board in March to 92.8 per cent. In April 2010, the CAP Clean performance averaged 96.16 per cent, so year-on-year figures are down by more than three points.

However, looking in greater detail shows in week 14, values averaged more than £6k across the board at BCA. By week 17 – the week of the Royal Wedding – values had tumbled to £4,950. Over the same period, average CAP performance fell from 95.8 per cent in week 14 down to 89.8 per cent in week 17.

‘The late Easter and the Royal nuptials had the potential to disrupt trading’

BCA’s communications director, Tony Gannon, said: ‘Buyer confidence has been quite fragile for some time now and we said several weeks ago that the combination of the late Easter and the Royal nuptials had the potential to disrupt trading. When you add in the hottest April on record to the equation – which must have had an impact in the retail sector – it has resulted in the most tangible evidence of a softening in demand we have seen this year.

‘This might be the precursor to a sustained period of price pressure such as that experienced in 2008. However, our view is that the market is more robust and leaner than it was three years ago, and the volumes available for remarketing are lower.’

Fleet values fell by £132 (1.7 per cent) to £7,413 in April, with CAP performance dropping by more than three points to 93.3 per cent.

COMMERCIAL VEHICLES

MEANWHILE it’s a similar situation with CVs. Figures for April show that average values fell by £211 (just over five per cent) compared to March, while sold volumes declined significantly by over 31 per cent, month on month.

Sold volumes had been climbing since the December lowpoint, when trading activity was significantly constrained by the severe winter weather.

Values averaged £3,969 in April, the first time values have dipped below £4k in 17 months and the lowest monthly average since November 2009.  Performance against CAP also came under some pressure, with the average figure falling to 97.5 per cent from just under 99 per cent in March.

Duncan Ward BCA’s general manager – commercial vehicles, said: ‘LCV sellers should look carefully at their remarketing plans and objectives between now and the autumn months, and ensure their stock is well prepared and sensibly valued in line with market expectations.

‘The used LCV market could be in for a bumpy ride in the short term, particularly as there are few signs of the economy improving and there is a distinct lack of confidence in the small business sector.’