Author:

ROBIN ROBERTS

The right cars at the right time are making very good money at auction, says the latest BCA Pulse Report.

The relative shortage of stock is generating significantly higher used car values and July recorded a £216 (3.6%) month-on-month rise, but it is the year-on-year figure that highlights the value evolution, with July 2012 being £547 (9.7%) higher than the same month last year.

The trend is clearly seen in both the fleet/lease and part-exchange sectors, which recorded 15.0% and 10.3% year-on-year value improvements respectively.

BCA’s figures show that average car values increased to £6,180 in July from £5,964 in June.  Fleet and lease values reached another new high point, averaging £8,053 – up just £11 from June’s figure – but still the highest monthly value on record.  Part-exchange values posted a £75 month-on-month rise, to reach £2,949 – also the highest average value on record since Pulse began reporting.  Nearly-new values improved by £780, largely as a result of changing model mix in this low volume sector.

Across the board, used cars averaged 96.94% of CAP Clean in July, up by nearly a point compared to June, while average age and mileage both fell marginally over the month, to 62 months and 59,000 miles.

BCA’s Communications Director Tony Gannon commented “It might seem counter-intuitive to report that used values have apparently climbed so sharply year-on-year, despite the continued challenging economic situation and relatively weak retail environment.  However, supplies reaching the wholesale used car market are quite significantly down on the peak seen four to five years ago.  The combination of lower new car sales and the tendency for vehicle owners to extend their replacement cycles simply means less stock is available to be sold.”

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