Used fleet and lease values hit record levels, according to BCA

For the second month running, average used car values rose across the board.

According to BCA’s Pulse report, record average monthly values were achieved in the fleet and lease sector. 

Nearly-new values also improved during the month of May.  As a result, the headline average value of a used car rose to its highest point on record in May, improving by £106 (1.3%) to £8,261.  Year-on-year, the headline figure was up by £458, equivalent to a substantial 5.8% rise. 

Simon Henstock, BCA chief operating officer UK Remarketing, said: “May is typically a slower month for the used vehicle sector, with the two Bank Holidays often proving disruptive to trading patterns.  However, average values for fleet/lease and dealer part-exchange cars continued to rise and remain at record levels.

“We are seeing a two-tier market develop where the very best presented cars are attracting a lot of attention from buyers, while poorer condition examples need to be realistically valued if they are to compete.  Ready-to-retail stock is very desirable and it is noticeable how the best grade and specification cars in attractive colours can outperform the rest of the market by some margin.

“In contrast, vehicles in poor condition and at above average mileage should be carefully appraised and sensibly valued in line with the condition report in order to attract buyers and sell first time.  Where appropriate, consider SMART repairs for quick wins on damage, particularly for scuffed alloy wheels, chipped or scratched paint, minor dents to bodywork and missing trim.”

Year-on-year table: Cars

Despite a small rise of just £7 over the month, fleet & lease car values reached record levels of £9,906 at BCA in May, the fourth consecutive month-on-month rise.  Retained value against original MRP (Manufacturers Retail Price) fell marginally to 41.9% from 42.1% in April, with age and mileage steady.  Compared to May 2015, average fleet & lease values were up by £187 (1.9%), with retained value static and average mileage and age falling.

Year-on-year table: Fleet & lease