Values of defleeted cars continue to climb, says BCA

Average values of defleeted cars continue to climb, according to the latest full-year figures from the BCA Pulse report.

Fleet and lease average values improved by £566 to £9,455, a rise of 6.3%, with age remaining static at just under 40 months and average mileage increasing by around 1,000 miles to 46,700.

Across the board, the average value of a used car sold at BCA in 2014 was £7,622, a rise of £566 compared to 2013. 

It is the highest annual figure on record at BCA.

Performance against CAP Clean fell slightly to average 96.55% across the year.

Average sale price compared to original cost new improved slightly to 42.39% in 2014, from 42.13% the previous year.

Over the past five years, average values have consistently risen year-on-year, by 1.3% in 2011, 4.7% in 2012, 13.8% in 2013 and 8.0% in 2014.

Average age and mileage have declined for the second year running, reversing the trend that was seen at the start of the decade.

Performance against CAP Clean was marginally higher compared to 2013 and was the highest average annual figure recorded in the past five years.

Simon Henstock, BCA’s UK operations director, said: “In terms of the used car market, the relative shortage of stock – a result of low new car sales over several years following the onset of recession – has helped keep values high.  However new car volumes have improved notably in 2013 and 2014.

He added “Demand in the wholesale sector is ultimately driven by the needs of motorists.  Rising confidence and the ‘feel-good’ factor is important to consumers and notably more-so when purchasing big-ticket items.

“An improving jobs market, a stable economy, historically low interest rates and low inflation have given people in work the confidence to make those bigger purchasing decisions and we have seen strong new and used car markets over the past two years.

"While we have that feel good factor and well balanced supply and demand, we can expect wholesale values to remain relatively strong. 

“However, we may see some changing dynamics on the supply side as rising numbers of nearly-new cars and returning PCP volumes add to the mix of fleet/lease vehicles and dealer part-exchange cars.”