BCA PULSE: FLEET & LEASE AND PART-EX VALUES STILL RISING HEADLINE VALUE DIPS AS MIX CHANGES







Published by Gerald Ferreira Date: July 4, 2012
Categories: General News

According to BCA’s latest Pulse Report, a change in mix saw the headline used car value fall by 2.2% in June compared to May.  The fall was generated by lower sale volumes and values of nearly-new cars, while values in the fleet & lease and part-exchange sectors continued to rise.

BCA’s figures show that average values fell by £134 to £5,964 in June.  Despite this, fleet values reached a new high point, averaging over £8,000 for the first time on record as BCA sold a slightly richer mix of cars from fleet and lease operators during the month.  Part-exchange values also posted a small month-on-month rise of £27.  Nearly-new values fell by nearly £2,000, entirely as a result of changing model mix as fewer prestige and executive cars reached the market in June.

Across the board, used cars averaged 96.1% of CAP Clean in June, up by half a point compared to May, while average age and mileage both rose marginally over the month, up to nearly 63 months and 60,000 miles.

Year-on-year, June 2012 average values are a substantial 5.3% ahead of 2011, while average age and mileage have climbed by 6.0% and 2.5% respectively in the same period.

Year-on-year table: All cars

All cars Avg Age Avg Mileage Avg Value Sale vs CAP
June 2011 59.93 58,334 £5,662 94.76%
June 2012 62.90 (+6.0%) 59,803 (+2.5%) £5,964 (+5.3%) 96.18%↑

Average Used Car Values

BCA’s Communications Director Tony Gannon commented “The market tends to slow down in the early summer and we have also had a short-term hangover from the Jubilee double Bank Holiday.  Volumes are down month on month, and year-on-year for that matter, underlining the shortage of supply reaching the marketplace.”

“In many ways, this dearth of stock is keeping values high as consumer confidence is still reported to be flat.   According to the CBI, retail activity is subdued and uncertainty over the economic outlook is putting a brake on consumer spending across the whole retail sector.”

Fleet & lease cars averaged £8,042 in June, up £106 (1.3%) month-on-month and the highest average monthly value recorded since Pulse began reporting in 2005.  CAP performance climbed by over a point to 96.8% with the average age rising marginally and average mileage climbing by nearly 500 miles over the month.  Performance against original MRP (Manufacturers Retail Price) was level month-on-month at 39.6% for the second month running.

Year-on-year, the fleet & lease sector recorded a significant 13.7% uplift (compared to the 7.9% rise seen last month), with CAP comparisons improving by over 2 points.

Year-on-year table: Fleet & lease

Fleet/ Lease Avg Age Avg Mileage Avg Value Sale vs CAP
June 2011 40.66 49,017 £7,071 94.75%
June 2012 40.78 (+0.3%) 48,847 (-0.3%) £8,042 (+13.7%) 96.81%↑

Average Fleet Values

Average values in the part-exchange sector improved by £27 to £2,874, equivalent to a rise of nearly 1%.  Values compared to CAP Clean improved by over 2 points to 92.7%, while average age and average mileage increased slightly.  Year-on-year, values were ahead by 8.5%, despite both age and mileage increasing over the period.

Year-on-year table: Part-Exchange

Part-Exchange Avg Age Avg Mileage Avg Value Sale vs CAP
June 2011 88.63 74,454 £2,648 91.00%
June 2012 89.44 (0.9%) 74,891 (+0.6%) £2,874 (+8.5%) 92.77%↑

Average Part Values

Average values in the nearly-new sector fell to £18,552 month-on-month, as a result of changing model-mix in this low volume sector.  Average performance against CAP Clean fell by more than two points to 99.7%.

Nearly-new Avg Age Avg Mileage Avg Value Sale vs CAP
June 12 8.23 8,549 £18,552 99.76%↓

Average New Car Values

Average Used Car Values 2012

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