Increased volume depresses September used car values
Average UK used car values fell in September from the record levels achieved over the summer months as volume began to return to the marketplace, according to the British Car Auction’s latest Pulse report. The headline average value of a used car fell by £572 (7.1 per cent) to £7,429, with performance against CAP Clean falling slightly to 97.5 per cent.
Model mix was a significant factor in the drop in the headline figure, as there was a notable percentage increase in the share of dealer part-exchange cars sold over the month, compared to higher value fleet and lease cars.
However, year-on-year values remained ahead by £422, equivalent to a 6.0 per cent uplift, with both average age and mileage falling over the period. CAP Clean performance was down by a point, year-on-year.
Fleet & lease cars averaged £9,445 in September, on a par with the average monthly price performance over the previous six months, while dealer part-exchange values increased slightly over the month to £4,059 – the second highest monthly figure on record. Nearly-new values declined from the record level seen in August, although model mix has a significant effect in this low volume sector.
Simon Henstock, BCA’s UK Operations Director commented “As expected, there was some price pressure in September as a result of rising volumes and a shift in the balance between part-exchange cars and fleet and lease vehicles. These factors typically exert some pressure on average values and conversion rates, although demand remains strong and the best quality cars continue to achieve often exceptional prices.”
He added “There is still plenty of volume in the pipeline due to arrive over the coming weeks and with greater choice for buyers in the marketplace, volume sellers should review their pricing strategy to reflect this changing dynamic and particularly when considering the “less attractive” vehicles on fleet. Cars in poor colours, with a high mileage, or requiring paintwork and repairs should be valued realistically to sell, reflecting their condition and grade.”
Fleet & lease cars averaged £9,445 in September, a fall of £148 (1.5 per cent) compared to August’s near record figure. CAP Clean performance was static at just under 97. 5 per cent. Year-on-year values were ahead by £263, equivalent to a 2.8 per cent uplift. The retained value against original MRP (Manufacturers Retail Price) was virtually static at 42.42 per cent when compared to August and was down half a point, year-on-year.
Average dealer part-exchange values improved slightly compared to August, rising to £4,059 – the second highest value recorded by BCA since Pulse began reporting in 2005 – despite a noticeable uplift in volume. Year-on-year values were ahead by £299 (7.9 per cent) with average age continuing to rise and mileage falling over the year. CAP Clean performance fell slightly compared to August and was down over a point, year-on-year.
Nearly-new values declined from the record level seen in August, falling by £1,408 (6.1 per cent) although model mix has a significant effect in this low volume sector. CAP Clean performance improved marginally to 100.56 per cent.