Remarketing firm BCA has reported a new record high value for average fleet and lease vehicle disposals in March, bursting through the £9500 mark for the first time at £9572.

That’s up £838 on March 2013, while fleet and leasing models also showed a slight decrease in age and mileage. 

Although demand remains strong, BCA is warning the industry to beware of shift. “The market is showing early signs of softening and, with the March new registration figures being the highest in a decade, this will generate more volume in the used car arena,” said BCA UK operations director Simon Henstock.

“If supply starts to outstrip demand there will inevitably be some downward pressure on average values, particularly for less attractive or poorly presented vehicles.”

However, the National Association of Motor Auctions reported a slightly different picture in terms of values, showing a 3.4% decrease in values compared with BCA’s overall 0.7% rise, although BCA’s average sale price of £7387 was well above the average £5259 quoted by NAMA’s membership. But the association did though report a rise in values of fleet and lease vehicles, rising by £100 to an average £8675, and it was also positive about the used sector. 

“The market in April has continued to show a good degree of positive retail activity in both the new and used market so far,” said NAMA data group chairman Craig Mailey.

“High new car registration figures recorded for March seem to have had little influence on used car sales volumes, which is encouraging.”

Vehicle data expert Glass’s also predicts a good 2014 for the second-hand market. “Q1 generally sets the trend for the forthcoming year,” said Glass’s sales director Ed Hummel.

“I think we’ll see sentiment in the used market continue to strengthen in the coming months.

“Consumer confidence is improving, new car sales are increasing and that’s helping to drive volumes in the used car market. The outlook for this year should be a positive one.”

Glass’s has also moved to debunk the myth that 4×4 values will plunge in the coming weeks, claiming that, aside from large petrol engine variants, 4×4 models have “lost a lot of their traditional seasonality”. 

“Of course, 4×4 trade values have peaked and we will see a softening in values over and above wider market declines expected in the coming weeks,” said the firm’s head of valuations and analysis Richard Parkin.

“But this is to be expected and we don’t see anything drastic happening.”

“We have been watching 4x4s with interest over the past two years and the pattern has definitely changed,” continued Parkin.

“Without any shadow of a doubt, many 4x4s remain popular in any weather extreme and at any time of year.”