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British Car Auctions’ (BCA) headline average value reached a record figure for the third consecutive month in April 2017.

 

The average value figure broke the £9,000 mark for the first time on record, withaverage values for fleet and lease stock also reaching a new high point of £10,473. Records were also established for dealer part-exchange vehicles where values rose by £82 (1.7%) to £4,676 in April.  Values for nearly-new vehicle values fell by just under 1%. Year-on-year, average values rose by £935 to £9,090, equivalent to an 11.4% growth over the period.  The auctioneer attributes the increase to “good levels of demand and BCA offering a richer mix of stock with a lower age and mileage profile.”

Simon Henstock, BCA Chief Operating Officer UK Remarketing commented “While seasonality is less of a factor   than it used to be, we still see some slowing of trade as the summer months approach.  Post-Easter, potential retail customers often turn their attention to funding the imminent summer holiday, as a result postponing any change of vehicle to later in the year.  This naturally impacts in the wholesale sector as professional buyers are more likely to buy to order or simply fill gaps on the forecourt.”

He added “Conversion rates are under pressure as a result, and it is critical to price vehicles correctly at the point of sale.  The old adage of ‘Best bid, first time offered’ is as true today as it ever has been and our data confirms that.  Sellers find that it becomes increasingly difficult to sell on a second or third entry for sale if they do not adjust their reserve values to meet market expectations.  It increases the time to sale and potentially results in higher holding costs for sellers as they chase the market down.”

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