Both fleet and lease part exchange values increased in March according to the latest BCA pulse report, showing growth over the year.
Fleet and lease car values averaged £9741 in March – a £79 increase (0.8%) compared with February and £71 up on March 2015. Retained value compared with manufacturers’ retail price, meanwhile, improved to 42.2% with age and mileage remaining steady.
Values of nearly new vehicles fell, on the other hand, though this low volume sector is partly affected by model mix. However, average used car values fell £91 (1.1%) compared with February, dropping to £7838 in March due to the changing volume mix and the fact dealers sold higher numbers of part exchange models coming from the surge in sales following the March plate change. Year-on-year figures, though, record a 4.1% rise in values, equivalent to £314.
Simon Henstock, BCA chief operating officer UK remarketing stated: “BCA reports a strong used car marketplace in March, with buyers being exceptionally active both in the auction hall and online. Reflecting seasonal patterns, we saw greater volumes from dealer part-exchange sources and this shift in the market mix impacted the headline value.”
Meanwhile, the average age of UK vehicles has fallen from 63.1 months to 60.6 months, with a subsequent fall in mileage from 56,059 to 52,382 miles. Fleet and lease vehicles have also dropped in average age and mileage, falling from 40.3 months to 39.2 months, with mileage dropping from 46,357 miles to 42,173 miles.
Contrastingly, Manheim figures show that superminis were the top ex-fleet performers in March, with average prices up 5.3% (£246) compared with February and 2.4% (£117) year on year. Overall ex-fleet average values were up by 3.2% from last month to £7043.
Manheim conversion rates were also high, with the lowest days-in-stock figure for ex-fleet cars for more than a year at 17 days – down two days from February and five from March last year.
With used vehicle volumes rising, Henstock advises sellers to remember the basics of remarketing: “Presentation and preparation are a given, and it is vital to properly identify and declare the specification, particularly if there are a lot of base-spec models about. Providing the service history at the point of sale is also important and can have a real, tangible effect on the potential prices vehicles might achieve.”
