BCA’s latest Pulse report shows that average used car sold values declined in June, as would typically be expected at the onset of the summer months.
Values across the board fell to £5,662 from the £5,790 recorded in May – a £128 decrease that was equivalent to 2.2% fall. Year-on-year, June 2011 is £140 (-2.4%) behind the same month in 2010. Sold volumes continued to increase, however, growing by nearly 2% compared to May and underlining that demand remains solid.
Performance against CAP Clean also improved, but only marginally from 94.5% in May to 94.7% in June.
BCA UK operations director Simon Henstock commented “As June progressed, there was a little more pragmatism from sellers when it came to valuing stock and conversion rates improved as a result – a trend that has continued into July. While dealers tell us that retail activity remained slow, the wholesale price adjustments and concerns that stock could be in short supply stimulated the market and sold volumes rose by around 2%.”
“The summer months typically see wholesale and retail activity slow down and there is usually a price adjustment to reflect that. However, we expect the market to remain steady over the next few weeks with activity levels likely to increase in anticipation of the September plate change.”
Fleet values continued to decline as they have done ever since the market peaked in January. Values fell by £278 (3.7%) to £7,071 in June, while CAP performance improved by half a point to 94.75%. Following a 21% rise last month, sold volumes continued to improve, although by a more modest 3.5%. Year-on-year values are behind by £385 or 5.1%.