Average used car values declined in the fleet and lease sector for the third month running, according to BCA’s July Pulse report.
Fleet and lease cars averaged £9,411 in July, a fall of £37 or 0.4% compared to June, with CAP Clean performance down slightly at 96.25%.
However, year-on-year values were ahead by £631, equivalent to a 7.1% uplift.
The retained value against original MRP (Manufacturers Retail Price) fell slightly compared to June to 42.00%, but was up year-on-year.
Headline figures rise to record high
Overall, the average used car value reached a record high in July.
The headline average value of a used car rose by 1.4% to £7,706, ahead of June’s figure by £109.
Average performance against CAP Clean improved marginally from 96.57% to 96.78%, while average age and mileage fell slightly compared with June.
Year-on-year, July 2014 was ahead by £831 or 12.0%, with both average age and mileage falling over the 12 month period. CAP Clean performance was up by nearly a point, year-on-year.
Simon Henstock, BCA’s UK operations director said: “We are now well into the summer holiday period and the wholesale markets are generally quieter – however, this year volumes have remained relatively high and there is still plenty of competition for the best stock on offer.”
“The shortage of good quality fleet and lease stock continues, with volumes not expected to pick up until the second half of September. Cars entered from dealer part-exchange sources have typically outperformed the market in 2014 and July was no exception. Average values reached record levels, as dealers continued to supply the marketplace with well-presented, realistically valued cars to tempt the buyers in.”
“Sellers should consider adjusting valuations now on poorer condition cars with a view to remarketing them before volumes begin to rise and buyers have more choice from mid-September onwards.”