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Values rise as UK stock shortages bite

A relative shortage of stock is generating significantly higher used car values in the UK, according to the BCA’s latest Pulse Report.

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.