July recorded a £216 (3.6 per cent) month-on-month rise, but it is the year-on-year figure that highlights the value evolution, with July 2012 being £547 (9.7 per cent) higher than the same month last year.
The trend is clearly seen in both the fleet/lease and part-exchange sectors, which recorded 15 per cent and 10.3 per cent year-on-year value improvements respectively.
BCA’s figures show that average car values increased to £6,180 in July from £5,964 in June. Fleet and lease values reached another new high point, averaging £8,053 – up just £11 from June’s figure – but still the highest monthly value on record.
Part-exchange values posted a £75 month-on-month rise, to reach £2,949 – also the highest average value on record since Pulse began reporting. Nearly-new values improved by £780, largely as a result of changing model mix in this low volume sector.
Across the board, used cars averaged 96.94 per cent of CAP Clean in July, up by nearly a point compared to June, while average age and mileage both fell marginally over the month, to 62 months and 59,000 miles.
BCA’s communications director, Tony Gannon, said: ‘It might seem counter-intuitive to report that used values have apparently climbed so sharply year-on-year, despite the continued challenging economic situation and relatively weak retail environment.
‘However, supplies reaching the wholesale used car market are quite significantly down on the peak seen four to five years ago. The combination of lower new car sales and the tendency for vehicle owners to extend their replacement cycles simply means less stock is available to be sold.
‘The real shortage is of good quality, ready to retail used cars, which is leading to fierce competition and generally rising values for the best examples reaching the remarketing arena. Dealers need cars to sell and they are increasingly looking at online routes to increase their stocking options.’