Year-on-year used car values continue to rise, says BCA

The headline used car value at BCA increased in May, with the average value of £9,262 just slightly ahead of April’s figure.

The two bank holidays and half-term break created the usual seasonal impact on demand, however, even with these distractions, year-on-year values continued to climb for fleet and lease, dealer part-exchange and nearly-new vehicles.

Stuart Pearson, chief operating officer for BCA UK Remarketing, said: “The market has been moving through some typical pricing realignment during April and May and, whilst these seasonal adjustments are to be expected, the incredibly buoyant market experienced during 2018 may have created some unrealistic expectations.

“We continue to work closely with our customers to ensure that they are fully appraised of trading conditions, utilising our unique BCA Valuations pricing intelligence to reflect remarketing sale values in real-time.”

Year-on-year table: All cars

All cars	Avg Age	Avg Mileage	Avg Value
May 2018	54.6	47,576	£9,568
May 2019	57.8	49,314	£9,262

Fleet and lease values averaged £11,370 at BCA in May 2019, ahead by £407 (3.7%) compared to a year ago. The retained value against original MRP (Manufacturers Retail Price) was down a percentage point at 42.4% when compared to 2018. Average age at time of sale has risen by one month to 39.9 months, while the average mileage of 39,216 was down slightly compared to a year ago.

Year-on-year table: Fleet and lease

Fleet/ Lease	Avg Age (months)	Avg Mileage	Avg Value	Sales vs MRP
May 2018	38.9	39,486	£10,963	43.5%
May 2019	39.9	39,216	£11,370	42.4%

Dealer part-exchange values continued to rise at BCA, with May 2019 showing a £159 increase year-on-year, equivalent to a 3% uplift and a marginal increase of April’s average value.

The improved quality of product on offer in this sector is helping to keep values firm, with average age and mileage decreasing compared to the same month in 2018, it said.

Year-on-year table: Dealer part-exchange

Part-Exchange	Avg Age (months)	Avg Mileage	Avg Value
May 2018	87.8	68,543	£5,000
May 2019	87.6	67,417	£5,159

Demand at BCA for nearly-new vehicles continued into May, with values averaging £21,579, up by £1,549 (7.6%) compared to a year ago. Model mix has a significant effect in this low volume sector, with brand specific winners and losers.

Year-on-year table: Nearly-new