February sees mixed picture for ex-fleet cars

It was a mixed picture for ex-fleet cars in February, with BCA reporting a 1.4% rise from £7,259 to £7,364, and Manheim a 2.8% fall from £6,609 to £6,425.

The overall average value for cars sold by BCA in February was £5,959 – a month-on-month increase of £20 (0.3%) compared to January’s figure of £5,939.

Values remain ahead year-on-year by £388 (a 6.9% increase), although this disparity is reducing sharply as values are now being compared to the recovering marketplace of 12 months ago, say BCA.

To put that into context, year-on-year figures were ahead by over 15% in January and 29% in December.

Manheim reported overall values stabilised with an increase of just £21 (0.3%) to £7,208. 

Mike Pilkington, managing director at Manheim Remarketing, said: “The message from the February market is clearly one of stability.

“Whilst there was a drop in values in the fleet sector, this was influenced by a rise in the average mileage and an increase of three months in the average age of stock that came through our 20 remarketing centres.”

Barry Watts, operations director of Aston Barclay Group, says that they have seen fleet volumes fall by around 10% compared with February 2009.

“Based on fewer cars coming to market, average prices on cars we have sold have increased by around 15% year-on-year to £8,686,” said Watts.

“Demand has been for all sectors of the trade with typical lease product of Audi and BMW continuing to be popular regardless of the economic state.”

He added: “Everyone has talked about fleets extending contracts, but when we analysed all the fleet cars going through our three sites, their ages and mileages were virtually identical year on year.

"The average age of fleet stock in February 2009 was 38 months and 58,543 compared with 38 months and a slightly lower mileage of 57,810 in February 2010.

“These suggest the profile of ex fleet cars coming to market haven’t changed, but the averages mask two compensating events.

"Where companies have shed jobs their cars have been de-hired early at a younger age and lower mileage, which has been offset by companies extending contracts by 12-18 months therefore increasing age and mileage.”

Looking at fleet and lease product by sector, BCA say the rise in value was across the board.

Budget fleet values recorded a nominal £5 rise, improving to £3,535. Volume fleet product rose by £35 to £5,515 (0.6%) with premium fleet stock improving by £397 to £10,536, recording the biggest percentage rise with a 3.7% increase.

Meanwhile, Manheim said that within the fleet sector, examples of notable decreases in values included: medium family down 1.7% (£102) to £5,793; large family down 3.7% (£191) to £5,016; compact executive down 8.2% (£748) to £8,343; and 4x4 down 7.6% (£1,036) to £12,607.

But, BCA communications director Tony Gannon, declared: “Fleets are the winners this month as values continue to show consistent growth, thanks to limited supplies and strong demand.”

BCA - Average Used values

Manheim – average values, ex-fleet cars