Observations by Tim Naylor, BCA
The headline average monthly used car value declined by 7% in April compared to March, although year-on-year values were up by more than 16%. Changing model mix combined with increasing volumes was largely responsible for the month-on-month decline.
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Across the board used cars averaged £6,502 last month, down £498 on March, but £903 (16.1%) ahead of April 2012. Average values have declined for four consecutive months since the record of £7,361 established last December.
Fleet and lease values fell for the second consecutive month, but remain significantly higher than a year ago, down 1.6% to £8,592. CAP performance fell quite sharply to 94.7% (from 97.6% in March). Dealer part exchange values climbed to a record level, while nearly new values fell, largely due to a change in model mix.
Post-Easter, buyer demand has weakened and stock availability has improved with resulting pressure on values and conversion rates. However, there is still plenty of interest in well-presented, retail-quality vehicles and here values continue to outperform price guide expectations.
The stronger demand at the budget end of the market continues and values for dealer part exchange vehicles continue to rise. Some of this value growth is undoubtedly a result of BCA securing a number of key remarketing agreements with prestige dealer groups in recent months. Demand remains high in the budget marketplace and average part exchange values remained above £3,500 for the fifth month in a row. Values improved £30 (0.8%) to £3,595 in April, although CAP performance fell to 93.4%. However, year-on-year values were ahead by £783 – a significant 27.8% up on April 2012 and the highest year-on-year uplift recorded in the dealer part exchange sector.
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