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BCA Pulse – average values stall in April 2019 

BCA Pulse – average values stall in April 2019 
As expected, used car values came under pressure in April due to a number of seasonal factors.  Despite this, year-on-year values continued to climb for fleet & lease, dealer part-exchange and nearly-new vehicles. 

Stuart Pearson COO BCA UK Remarketing commented “As predicted last month, the seasonal run of public holidays over the Easter period and into May has put pressure on the market at a time when supply is typically plentiful. As ever, our advice is for vendors to be disciplined around the remarketing process with enhanced preparation, accurate descriptions, comprehensive documentation and, most importantly, realistic reserve setting ensuring that buyers remain actively engaged.” 

He added “Buyers have been particularly cautious as we’ve seen values shifting on an almost weekly basis since the start of April.  Based on the sustained increase in values over many months, some realignment is therefore not unexpected and isn’t unusual for this time of year.  Customers that utilise real-time market intelligence and act decisively continue to attract the best following, as retail conditions remain in line with expectations for the current climate.”

 Year-on-year table: All cars 

All cars

Avg Age

Avg Mileage

Avg Value

Apr 2018

54.58

47,637

£9,584

Apr 2019

58.31

49,299

£9,248

Fleet & lease values averaged £11,406 at BCA in April 2019, ahead by £269 (2.4%) compared to a year ago.  The retained value against original MRP (Manufacturers Retail Price) was down a percentage point at 43.1% when compared to 2018  Average age at time of sale has risen to 39.8 months, while the average mileage of 38,916 was down compared to a year ago

 Year-on-year table: Fleet & lease

 

Fleet/ Lease

Avg Age (months)

Avg Mileage

Avg Value

Sales vs MRP

Apr 2018

38.58

39,340

£11,137

44.1%

Apr 2019

39.82

38,916

£11,406

43.1%

Dealer part-exchange values continued to rise at BCA, with April 2019 showing a £150 increase year-on-year, equivalent to a 3% uplift.  The improved quality of product on offer in this sector is helping to keep values firm, with average age and mileage decreasing compared to the same month in 2018.  

Year-on-year table: Dealer Part-Exchange

 

Part-Exchange

Avg Age (months)

Avg Mileage

Avg Value

Apr 2018

88.26

69,098

£5,000

Apr 2019

87.14

66,811

£5,150

 

Demand continues for nearly-new vehicles at BCA into April, with values at £22,557, up by £3,387 (17.6%) compared to a year ago. Model mix has a significant effect in this low volume sector, with brand specific winners and losers 

Year-on-year table: Nearly-New

 

Nearly new

Avg Age (months)

Avg Mileage

Avg Value

Apr 2018

8.39

8,167

£19,170

Apr 2019

8.67

7,895

£22,557