September sees significant
rise in average values in the fleet and lease sector.
Tim Naylor, who edits the
monthly Pulse report, looks at the latest set of BCA
figures for Motor Finance in terms of the wider
market
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The return to a more traditional,
seasonal market shape continued in September, with average used car
values climbing – albeit only marginally compared to August.
Although the average rise across
the board was small – at just £33 – there was a significant rise in
average values in the fleet and lease sector, with more modest
increases in part-exchange and nearly-new values over the
month.
The average used car value at BCA
climbed to £5,938 in September from £5,905 in August – equivalent
to just over a 0.5% increase over the month. Performance against
CAP Clean increased by over two points to 98.34% – the
third-highest figure this year.
Fleet values rose by £376 (5.1%)
from £7,335 in August to £7,711 in September – the largest monthly
increase recorded in the past 12 months. Year-on-year values are
behind, however, by £139. Part-Exchange stock values improved by
1.2% to £2,610, with nearly new average values increasing by £428
to £19,410, equivalent to a 2.2% improvement over the month.
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By GlobalDataDemand remains high for cars in
good, ready-to-retail condition and values for the best examples
can outstrip guide expectations by hundreds or even thousands of
pounds.
The figures come against a backdrop
on a new car market that is continuing to slow, with September
falling 8.9% to 335,246 units – the second-lowest volume for the
month since 1999, when twice-yearly registrations were
established.
Up to one year old
Despite average late year, low mileage
values improving by over 2%, there was a mixed picture across the
body shapes up to one-year-old sector.
In many ways the under 12-month-old
car is a very desirable commodity at the moment – a considerable
saving over the new price, and no ‘on the road costs’ are obvious
attractions, but also the ‘take it away today’ factors should not
be underestimated – no waiting for delivery and no tricky choices
to be made over colour and trim.
As last month, there is a somewhat
confused picture on sub-one year values. Saloons – one of the
larger volume sectors, of course – generally had a good month, with
values improving by several points across the board. Small
hatchbacks held their ground and were largely unchanged, although
larger hatchback values fell – largely as a result of model mix
changes at BCA.
Small MPV values were broadly
unchanged, although larger MPVs declined in value by around five
points compared to August. Estates improved, while 4x4s finally
experienced a little bit of price pressure – but expect that to
change if winter conditions appear.
The niche markets for coupés and
roadsters both declined, although convertible values were buoyed –
possibly by the better than usual weather experienced in
September.
One to three years old
Once again, the 1-to-3-year-old sector
had a strong month with average values for volume vehicles holding
up well compared to August, and no significant price pressure in
the niche sectors.
Smaller saloons, hatchbacks,
estates and MPVs all outperformed the previous month, with values
improving by up to 6%. Larger saloons slipped by a point, and 4x4s
were down about four points, with coupés and roadsters recording a
similar price performance. Once again, a late burst of demand for
convertibles saw values improve by over three points.
Performance against CAP was more
variable – saloons, large MPVs, estates, 4x4s and coupés were all
ahead of book values, while roadsters, convertibles, hatchbacks and
small MPVs lagged behind.
Three to five years old
There were good levels of demand seen
in this older age sector last month, with smaller saloons and
hatchbacks, estates, large and small MPVs and 4x4s improving in
value compared to the previous month.
There was more price pressure on
coupés, roadsters and convertibles, with the latter two seeing
values fall by up to 10 points.
CAP performance was concentrated in the mid-90s, although values
for 4x4s and coupés averaged above CAP Clean.
