BCA sees record November values

Average used car values at BCA reached record levels in November as buyers competed strongly for the stock on offer. 

The headline average value of a used car increased for the second month running, rising by £327 (4.2%) to £8,075, with performance against CAP Clean averaging 95.2%.  November’s average value beat the previous highest, recorded in August of this year.

Year-on-year values remained ahead by £586, equivalent to a 7.8% uplift, with both average age and mileage continuing to decline.  CAP Clean performance was down by more than a point, year-on-year.  Every month in 2014 has recorded a significantly higher average value compared to the same month in 2013.

Fleet and lease cars averaged £9,633 in November, a rise of £100 (1.04%) compared to October, while average dealer part-exchange values improved for the third month running to reach £4,188.  Both sectors recorded the highest monthly average values since Pulse began reporting in 2005.   Nearly-new values improved by 2.4% to £21,677, although model mix has a significant effect in this low volume sector.

Simon Henstock, BCA’s UK operations director said: “With many retailers anecdotally reporting reduced footfall in November, demand has softened somewhat as the year end approaches, which is very typical of the season.  Balancing this, there remains a shortage of good quality, retail-ready stock and this is keeping the values of these premium vehicles on a high.”

“What we are seeing is the development of a two-tier market, where the best vehicles sell quickly for often exceptional values, while the less attractive or over-valued cars struggle to attract bids. 

"If less desirable cars in unattractive colours, with a poor specification and needing paint and refurbishment are overvalued, there is every chance they will remain unsold, putting pressure on conversion rates.  Volume sellers particularly need to pay attention to this and reappraise and revalue any vehicles that are proving difficult to remarket.”

Fleet & lease cars averaged £9,633 in November, a rise of £100 (1.04%) compared to October – a record value that was just ahead of the previous highpoint recorded in April of this year.  Despite this, CAP Clean performance fell slightly to 94.66% on average over the month. 

Year-on-year values were ahead by £332, equivalent to a 3.5% uplift. The retained value against original MRP (Manufacturers Retail Price) fell slightly at 41.70% when compared to October and was down year-on-year.