Quantcast
Is your car your pride and joy, or are you ready for a change? Let us know and you could win a £300 John Lewis voucher | No thanks

Fleet and nearly-new only values that improved in static February market

 

BCA’s Pulse report shows that average used car values rose marginally in February, increasing by under half a percent compared to January’s figure to £5,959. Average values rose in the fleet/lease and nearly-new sub-sectors, with values falling by just £10 in the part-exchange market.

The overall average value for cars sold in February was £5,959  – a month-on-month increase of £20 (0.3%) compared to January’s figure of £5,939.  CAP performance improved by one and half points to 98.87% in February.

Values remain ahead year-on-year by £388 (a 6.9% increase), although this disparity is reducing sharply as values are now being compared to the recovering marketplace of 12 months ago.   To put that into context, year-on-year figures were ahead by over 15% in January and 29% in December.

 Average values rose in two of the three main product sectors: Fleet & Lease values rose by £105 (1.4%) to £7,364 and Nearly-New values improved by £1,085 to £18,922 – a 6.0% rise to the second highest point on record. Part-Exchange values were virtually unchanged, falling by just £11 to £2,658 with budget models feeling the pressure.

 Model-mix prevented the average monthly increase being much higher as volumes in the cheaper part-exchange sector rose by 16% (following a significant 45% increase last month).  Fleet & Lease and Nearly-New volumes were broadly in line with last month.

BCA Communications Director Tony Gannon commented “Supply and demand remains well balanced in the used market, and February has been a much more typical month following the weather-affected start to the year.   Fleets are the winners this month as values continue to show consistent growth, thanks to limited supplies and strong demand.  It was a little surprising to see budget values stutter, but with supplies increasing substantially for the second month running, demand did well to keep up.”


Fleet & Lease Sector – February 

Average Fleet & Lease values rose for the second month running, with £105 (1.4%) added to the average value in February.  Values increased from £7,259 to £7,364, while performance against CAP Clean improved for the third month running, rising by two points to 98.6%. 

Year-on-year values remain ahead by £1,078, compared to the £1,500+ increase recorded last month – BCA expect this figure to fall sharply in the months ahead.  

Fleet & Lease – by sector

 Looking at fleet and lease product by sector, the rise in value was across the board.  Budget fleet values recorded a nominal £5 rise, improving to £3,535.   Volume fleet product rose by £35 to £5,515 (0.6%) with premium fleet stock improving by £397 to £10,536 and recording the biggest percentage rise with a 3.7% increase.

Part Exchange Sector – February

Average Part-Exchange values fell by just £11 in February, to £2,658.  P/X sold volumes at auction increased from January (up 16.2%), which shows that demand broadly kept pace with the additional supply.  Performance against CAP also improved but by just half a point to 96.13%, after leaping by nearly five points in January

Looking at P/X product in detail, premium P/X cars rose by £83 to £4,662 (up 1.8%), volume P/X values improved from £1,849 to £1,872 (up 1.2%), while budget P/X values fell by £118 to £1,355 (down a significant 8.7%). 

Nearly-New Sector - February

Nearly-New values at BCA in February improved by £1,085 to £18,922 – a 6.0% rise to the second highest point on record.  With lower numbers than the fleet and part-exchange sectors, model mix has a greater role to play and BCA recorded some significant results for nearly-new cars in both manufacturer closed sales and Top Car and Prestige sales during February.  Performance against CAP Clean was unmoved at just under 103%.

 Published by BCA All material © BCA 2005-2010

 Website: www.bca-europe.com     

 

Meanwhile, Manheim reports that fleet values fall by 2.8% in February as average used car wholesale values stabilise

 

Manheim Remarketing’s latest Market Analysis for Cars reports that average wholesale values in the Fleet sector fell by 2.8% (£184) to £6,425 in February compared with the previous month, while overall values stabilised with an increase of just 0.3% (£21) to £7,208. Dealer part exchange values fell by 0.6% (£14) to £2,198 while Manufacturer stock increased by 4.0% (£502) to £12,940.

 

In February the only vehicle segment to show an overall increase in average values in all three sectors was Superminis with a rise of 3.9% (£143 to £3,770) in the Fleet sector, 4.4% (£59 to £1,408) in the Dealer sector and 6.8% (£319 to £5,034) in the Manufacturer sector. In contrast the Executive segment was the only one to suffer a decrease in values in all three sectors with falls of 5.7% (£669 to £11,020), 1.8% (£58 to £3,126) and 4.5% (£879 to 18,488) respectively.

 

Within the Fleet sector, examples of notable decreases in values include:

·       Medium Family down 1.7%  (£102) to £5,793

·       Large Family down  3.7% (£191) to £5,016

·       Compact Executive down 8.2% (£748) to £8,343

·       4x4 down 7.6% (£1,036) to £12,607.   

 

Notable increases in Dealer part-exchange values include:

·       Medium Family up 1.4% (£29) to£2,108

·       Compact Executive up 2.0% (£65) to £3,266

Examples of decreases in values include:

·       Large Family down 4.3% (£79) to £1,751

·       Mini-MPV down 1.2% (£29) to £2,317

 

In the Manufacturer sector notable increases include:

·       Medium Family up 4.3% (£421) to £10,271

·       Large Family up 13.6% (£1,509) to £12,620

·       4x4 up 12.6% (£2,300) to £20,503

Examples of decreases in values include:

·       Small Hatchbacks down 1.3% (£111) to £8,648

·       Compact Executive down 1.2% (£196) to £16,466

 

Mike Pilkington, Managing Director, Manheim Remarketing said: “The message from the February market is clearly one of stability. Whilst there was a drop in values in the Fleet sector, this was influenced by a rise in the average mileage and an increase of three months in the average age of stock that came through our 20 remarketing centres. The inclement weather, although better than January, failed to deter buyers with both physical and online attendances remaining strong. The continued success of our new super-centre at Bruntingthorpe confirmed the appetite of motor trade buyers for quality Fleet stock and the rise in values by 4% within the Manufacturer sector indicates a healthy demand from franchised dealers”.

More at Manheim 

 

Comments

Add a comment

 

Ask Honest John

Value my car

Amount to borrow
Sorry. The minimum loan amount is £1000
To pay back over

My credit score

Best available rate 9.20%

Total repayment £9,304.93

Total cost of credit £1,804.93

£155.08

60 monthly payments

Apply now

Representative example

The Representative APR is 13.2% (fixed) so if you borrow £7,500 over 4 years at a rate of 13.2% p.a (fixed) you will repay £199.21 per month and repay £9562.20 in total.