The latest BCA Pulse report shows that the headline average value of a used car fell by £69 (0.8%) in May. 

Despite this, both fleet/lease and part-exchange values reached record levels for the second month running, suggesting a changing model mix was largely responsible for the small drop in the headline value. 

The headline average value of a used car in April fell by sixty nine pounds to seven thousand eight hundred and three in May, with performance against CAP Clean almost static. Year-on-year, values were up by £206, a 2.7% rise with average mileage falling and age static over the year. Performance against CAP Clean was little changed over the year.

Simon Henstock, BCA’s UK operations director commented “May is typically a slower month for the used vehicle sector, with the two Bank Holidays often proving disruptive to trading patterns and the impact on demand as consumers begin to focus on paying for their summer holiday.”

“However, demand was strong in May with average values for fleet/lease and dealer part-exchange continuing to rise to record levels." he continued.

"The market remains short of good retail-quality stock and it is noticeable how the best grade and specification cars in attractive colours often outperform the rest of the market by some margin.

“We continue to see plenty of vehicles in poor condition and at above average mileage, however, and sellers should look closely at appraisal reports and condition ratings when setting reserve prices. These vehicles must be valued competitively and in line with condition in order to attract buyers and sell first time.”

Henstock added “It is worth investing in pre-sale SMART repairs for vehicles that have sustained minor cosmetic damage, particularly for otherwise high-demand, well-specified examples that have picked up the odd car park dent or bumper scuff during their working life.

Fleet & lease cars averaged nine thousand seven hundred and nineteen pounds in May, rising by just nineteen pounds compared to April, but establishing a new record monthly average value.   Retained value against original MRP (Manufacturers Retail Price) fell by half a point to just under forty two % over the month, with age and mileage broadly static.  Average values were up £182 (1.9%) compared to May 2014, with performance against CAP Clean up by half a point and retained value down on 2014 by half a point.  

For the second month running, average dealer part-exchange values reached a record level, improving by £49 (1.1%) to £4397. Year-on-year values remain ahead by £349 (8.6%), with CAP Clean performance ahead by half a point compared to a year ago. 

Nearly-new values improved for the second month running, although model mix has a significant effect in this very low volume sector.  CAP Clean performance improved by half a point to 99.5%.

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