Demand high as fleet sector values rise

Used car values in the fleet sector saw a sharp rise in January with BCA and Manheim both reporting increases.

At Manheim, the fleet sector experienced an increase in average values of 6.7% (£383) to £6,124, while BCA reported an increase of 6.9% (£504) to £7,739.

This was the highest monthly average value since April 2010 recorded by BCA and completely reversed the steep average value losses experienced in October and November of last year.

Year-on-year, values are ahead by £480, equivalent to a 6.6% rise, with fleet cars averaging 98.65% of CAP Clean in January, a rise of two points over the December figure.

At Manheim, examples of increases in values in the fleet sector in January included: small hatchbacks up 8.7% (£345) to £4,330; medium family vehicles up 8.6% (£436) to £5,527; large family up 12.9% (£554) to £4,848; compact executives up 7.5% (£588) to £8,397; mini MPVs up 9.7% (£435) to £4,895; and 4x4s up 7.7% (£940) to £13,146. 

However, BCA’s communications director Tony Gannon warned: “It is no real surprise to see values strengthen in January as the market generally enjoys an uplift of activity following the extended Christmas break.

“This is typically sustained until the Easter period – which usually represents a watershed in demand.

“While supply should remain constrained throughout February and the early weeks of March, it is likely that volumes will start to rise in late March following the plate change as de-fleeted and dealer part-exchange vehicles begin to hit the market.”

He added: “Easter week itself is late in April and runs into the Royal Wedding – effectively disrupting a full week of trading.

"This is a particularly important consideration for volume sellers who should be planning their strategies now for that period, which could see demand slowing, just when volumes are rising.”

The difference in average prices between BCA and Manheim is down to the model mix on offer at individual sales