Average used car prices remain at near record levels

Average used car values in the fleet and lease sector remained at near record levels, as they have done for most of 2015, despite falling by £65 (0.6%) compared to June, according to BCA.  

The headline average of a used car value rose by £154 (1.9%) over the month, equivalent to a 1.9% uplift with performance against CAP improving by half a point.  Year-on-year, values continue to climb with the average value of a car sold by BCA in July 2015 up by £206 (2.6%), compared to July 2014.

Simon Henstock, BCA’s UK operations director, said: “Supply and demand remain well balanced, with conversion rates improving in July, despite the typical summer slowdown the market experiences once the summer holiday period begins.

“Sales have been well attended throughout the auction network in July and online bidding has been strong, but it is noticeable that buyers are being more selective.  Condition, preparation and presentation is important and it is worth considering SMART repairs for those cars that have suffered low level cosmetic damage in the shape of car park dents, stone chips and damage to alloy wheels.

“Sellers have generally been receptive to market sentiment in July, setting sensible reserves that have seen sale conversion rates at healthy levels.  There is little to be gained by over valuing cars, particularly when there is increasing competition for the buyer’s wallet.”

Fleet and lease cars averaged £9,662 in July. The past six months have recorded the six highest average monthly values on record for the fleet and lease sector.  Retained value against original MRP (Manufacturers Retail Price) fell marginally to 41.69% over the month, with age and mileage broadly static.  Average values were up by £251 (2.6%) compared to July 2014, with performance against CAP Clean up by a point and retained value marginally down on 2014.  

Year-on-year table: Fleet and lease