BCA’s latest report into used car sales shows that the headline average value of a used car continued to increase in May, rising by £44 to a new record monthly average of £7,597.
Values in May 2014 were 7.8% higher that May 2013, with average age and mileage broadly static over the 12 month period. Dealer part-exchange values broke record levels for the third month running, rising by £66 (1.6%) to exceed £4,000 for the first time. Year-on-year, values were ahead by £330 (8.8%) with average age rising and mileage falling over the year.
However records were not smashed across all markets with fleet & lease values declining marginally (a fall of £87 or 0.9%) compared to April. That said, the monthly average in this segment of £9,537 was the third highest on record. Nearly new values improved for the third consecutive month, rising to £21,502, the highest point this year and an increase of £568 over April. Volumes remain very low and model mix remains the most significant price factor.
BCA’s UK Operations Director, Simon Henstock commented “Following a relatively tough April, demand recovered well in May with average values continuing to rise and conversion rates improving despite volumes remaining high. As has become the norm over many months, the market remains short of good retail-quality stock and it is noticeable how the best presented, nicest specification cars in attractive colours often outperform the rest of the market by some margin.”
“However, there is an oversupply of vehicles in poor condition and higher than average mileage and sellers should look closely at appraisal reports and condition ratings when setting reserve prices. Less attractive or poorly presented vehicles must be valued competitively and in line with condition in order to attract buyers and sell first time.”
Henstock added “It is worth investing in pre-sale SMART repairs for vehicles that have sustained minor cosmetic damage, particularly for otherwise high-demand, well-specified examples that have picked up the odd car park dent or bumper scuff during their working life.”
Leave A Comment