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Fleet and lease residual values continue to rise in January

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Fleet and Lease values were up 8.1% year on year in January, according to BCA’s latest Pulse report.

The average value for fleet and lease cars in January was £9,218, a rise of £56 (0.6%) compared to December and the second highest value on record.

Values were up by £692 (8.1%) year on year.

CAP performance improved by two points over the month to 97.73% and was static year-on-year.

Retained value against original MRP (Manufacturers Retail Price) was up a point at 42.46%, compared to December and year-on-year. 

However, the headline average value fell in January 2014 from December’s high point.

BCA’s data shows that average values in January fell by £192 (2.5%) to £7,381 compared to the previous month. 

BCA said that this was largely due to a changing mix of vehicles, as volumes rose sharply during the month. 

Year-on-year, January 2014 was ahead by £244 or 3.4%.  

Average age rose slightly over the month while average performance against CAP Clean improved by a point to 97.98%.

Simon Henstock, operations director at BCA, said: “We have seen a similar pattern over the past three years as volumes rise in January and the model mix changes compared to the very short trading period in December.

“The longer term trends show that used car values continue to rise and January was exceptionally busy in the wholesale markets, with BCA achieving record results in the first weeks of 2014, offering and selling more vehicles than at any time in our history. 

"Blackbushe alone sold a record breaking 1,144 cars on one day in January, and achieved a weekly record sold volume in excess of 3,100 vehicles during the month. 

"Belle Vue in Manchester also achieved record weekly sale figures as did Glasgow and Edinburgh. 

"Around the network, BCA centres in Brighouse, Walsall, Bedford, Birmingham and Measham all achieved record sale day performances.”

Average dealer part-exchange values have been broadly static since October last year and fell by just £12 (0.3%) in January. 

Year-on-year, values were ahead by £266 (7.4%) compared to January 2013 with average age rising and mileage falling marginally over the year. 

CAP performance improved to 96.68% in January, up one and a half points compared to December.

Nearly new values fell from December’s record level to £21,183 in January, but volumes remain very low and model mix remains the most significant price factor.

 


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