Buyer confidence improved at BCA in May
following late-April’s very disruptive trading conditions. The
market was typical for late spring, with some price pressure but
lots of interest for the most desirable vehicles. Conversions have
improved and supply and demand is reasonably well balanced. Supply
is not expected to grow before September’s registration plate
change.
BCA continues to express concerns about
economic uncertainties and inflation, particularly the cost of
household essentials and fuel, and the effect on consumers with
fixed budgets thinking about buying a replacement or ‘new’ used
car. It cites the British Retail Consortium which reports that
shoppers bought fewer items across the board in May, with falling
sales of big-ticket items.
Go deeper with GlobalData
Fleet and lease values fell for the fourth
consecutive month in May, largely because of a market peak in early
January, which has slowly declined ever since. Values fell by £64
(less than 1%) over the month to £7,349, while CAP performance
improved by a point to 94.27%. Sold volumes improved by a
significant 21% compared to April, broadly returning to where they
were in March. Year-on-year values fell by £79 – just over 1%.
Under one-year-old
Price pressure was a little more noticeable
in the nearly-new sector during May, with values down
month-on-month for six body shapes, although much of this was due
to model mix rather than falling demand. This stock is limited in
remarketing channels and there is strong competition for almost
every car. Performance against CAP Clean improved by over a point
to 102.5% across the board.
4×4 values improved after a few weeks of
price pressure, while roadster values posted a significant 15 point
plus increase. Model mix, again, was probably the principal reason
for this.
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By GlobalDataOne to three-years-old
Steady price pressure in the bigger volume
sectors meant prices fell fairly uniformly (except for a massive
drop in roadster values caused by model mix). As usual in May, only
convertibles grew in value.
CAP performance in the volume hatch and MPV
sectors was generally in the mid-90s, while lower volume and niche
models – and, perhaps surprisingly, the saloon car sector – were in
the high 90s.
Three to
five-years-old
In the volume sectors, small salons,
mini-MPVs and estates prices declined from April, while large
hatchbacks improved in value.
In the lower volume sectors, there was
greater pressure on 4×4 and coupe values, while roadsters and
convertibles saw values outperform CAP Clean for the fourth month
running.
