Fleet and lease used car values rise in September, reports BCA Pulse

Average fleet and lease used car average values rose by 0.5% (£52) in September, according to BCA's latest Pulse report.

Part-exchange values climbed by 2.1% (£91), although the headline average value declined by £137 (1.7%) as there was an increase in the share of dealer part-exchange cars sold over the month, compared to higher value fleet and lease cars.

With this change in model mix, the headline average value of a used car fell to £7,702, with performance against CAP Clean improving by a point to 98.65%.

Year-on-year, average values were up by £273 (3.6%), with age static and mileage falling.

Performance against CAP was up by one percentage point compared to 2014.

Both fleet/lease and dealer part-exchange values also recorded year-on-year value increases and improved CAP performance. 

Simon Henstock, UK operations director for BCA, said: “September was a strong month at BCA, with independent buyers particularly active and bidding strongly. 

"We are seeing a good balance between supply and demand in the wholesale markets.”

He added: “There is still plenty of volume in the pipeline due to arrive, however, and we will be seeing greater numbers of ex-fleet and part-exchange vehicles over the coming weeks. 

"With greater choice for buyers in the marketplace, volume sellers should review their pricing strategy to reflect this changing dynamic.

"Cars in poor colours, with a high mileage, or requiring paintwork and repairs should be valued realistically to sell, reflecting their condition and grade.

"Dealers will look to buy stock that requires little or no refurbishment and any vehicles needing paint work or repairs will need to be priced accordingly – particularly as fresh stock arrives in the coming weeks.”

Fleet and lease cars averaged £9,700 in September, up by £52 (0.5%) compared to August and maintaining the steady price performance in the fleet and lease sector seen throughout most of 2015 – average values have been relatively stable around £9,700 since February of this year.

Retained value against original MRP (manufacturers' retail price) was down slightly at 42.09% over the month, with age and mileage broadly static. 

Average fleet and lease values were up by £255 (2.7%) compared to September 2014, with performance against CAP Clean up by half a point and retained value down by a third of a percentage point on 2014.