BCA’s latest Pulse report shows that the headline average monthly used car value in June declined by just 0.6%, with fleet and lease values rising and dealer-part exchange values falling slightly.
Year-on-year values remained well ahead, up by 17.3%. BCA reports that demand from professional buyers remains strong for the best retail-ready examples in the used car market, alongside continued interest in the budget end of the market.
Across the board used cars averaged £7,000 last month, down by £45 compared to May and significantly ahead of June 2012 by £1,036 (17.3%). Average values have remained at or above £7,000 for five out of six months this year, a significant step up from 2012, when values averaged nearer £6,000.
Fleet and lease values improved to the highest average monthly figure on record, while dealer part-exchange values fell marginally from last month’s record level, but still recorded a substantial year-on-year uplift of 28.3%. Nearly new values fell largely as a result of a change in model mix.
Simon Henstock, BCA UK operations director said: "Average monthly values have been remarkably consistent this year, suggesting supply and demand are relatively well balanced.
"However, trade buyers are showing less interest in cars requiring significant work to bring them up to ‘showroom condition’ unless these vehicles are priced very competitively.
"In contrast, vehicles offered in ready-to-retail condition are highly sought after, with values typically outstripping guide expectations often by some considerable margin.
"The budget end of the market also remains strong, particularly in the £2,000 to £3,000 price sector, and older, well-presented cars at sensible mileages will also regularly outperform guide values."
Fleet and lease cars averaged £8,860 in June, a rise of £56 (0.6%) compared to May. CAP performance improved to 95.74% from 94.8% the previous month, while retained value against original MRP (manufacturer's retail price) improved marginally to 41.97% across the fleet & lease sector at an average of 39.4 months and just under 45,000 miles.
Year-on-year, the fleet and lease sector recorded a significant £818 (10.1%) uplift. Average age and mileage were virtually static month-on-month, but down year-on-year.
Average part-exchange values fell by £26 (0.7%) to £3,692 from last month’s record average of £3,718. Year-on-year values were ahead by £818 - a significant 28.4% up on June 2012. CAP performance improved by a point to 95.4% in June.
Average values fell in the nearly-new sector in June to £18,360 from £19,919 in May, with performance against CAP Clean falling by a point to 97.5%. Nearly-new values will always be affected by changing model mix in this low volume sector.