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.