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BCA report van prices rising in auctions for nineth consecutive month
publication date: Aug 8, 2009
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author/source: Robin Roberts
BCA's Pulse report for July shows that used car
values are continuing to rise as average auction values increased for
the ninth month running.
Average values across the board reached £6,028 in July - a substantial
£178 (3PC) increase over June's figure of £5,850 and breaking the £6K
barrier for the first time on record.
Year-on-year values are now £1,079 or 21.8PC ahead of July 2008 -
reflecting both that values were falling sharply this time last year,
and that 2009 has seen sustained improvements in value.
One further sign of the current strength in depth of the used car
market is the performance against CAP has risen for the third straight
month and is again averaging over100 PC of Clean values for all stock.
Considering that the BCA sample includes everything from a small number
of nearly-new cars through to high-mileage part-exchange vehicles, this
underlines that demand continues to outstrip supply.
According to BCA's figures, in July average values for Fleet &
Lease cars rose substantially by £324 while average Part-Exchange
values climbed by £136 and Nearly-New values improved by a £745 - with
a virtually identical mix of cars from the premium, volume and budget
sectors as seen in June.
BCA's Communications Director Tony Gannon commented "Last month's
edition of Pulse suggested values were kicking on following a relative
lull, and July certainly provides additional proof of that. Values have
risen by nearly £400 over the rolling three-month period despite the
market now entering a period where values have traditionally softened
over the summer holidays."
Gannon added "As last month, stock levels remain relatively low, and
certainly behind typical levels for the current period in previous
years. The vast majority of vehicles being offered are sold first time
and conversion rates remain exceptionally high."
He continued "This latest Pulse data supports the view of Prof Peter
Cooke (writing in BCA's recent Used Car Market Report) that reduced
supply from the new car market is impacting the stock mix and value in
the used car arena. With continued demand from motorists for ‘value for
money motoring', this is likely to intensify pressure and competition
for used cars for the foreseeable future. Certainly, the Pulse data
seen over recent months would suggest this might well be the case."
Auction values for the Volume car sector within fleet & lease
product have improved every month this year, and a further £188 was
added to the average value in July. Performance against CAP Clean for
volume fleet & lease cars rose for the third month running
to100.2PC.
Following a series of strong results in the Top Car sector in recent
weeks, there was a further rise in the values of Premium fleet product
in July. Average values climbed by £375 to £10,786. Year-on-year
figures are now over £2,000 ahead of those recorded in July 2008 - a
factor of the strong result this July and a steep month-on-month fall a
year ago. Premium fleet cars continue to outperform Clean values as
they have consistently done since February of this year and, year on
year, the average CAP performance is 11.5 points higher than in 2008.
While values for Volume and Premium cars continued to improve strongly,
values for fleet & lease budget models seem to be under pressure.
Prices have stuttered in recent months - and even with the £100 rise
recorded in July - fleet budget cars are certainly showing the weakest
growth and poorest performance against CAP. At just94.25PC this sector
is between six and eight points of the pace set by volume and premium
fleet cars. | | Gannon commented, "A year ago, when fuel prices were
spiraling and the economy seemed to be in freefall, CAP performance in
the budget fleet sector was on a par with volume and premium fleet
cars. As recently as March2009 , CAP performance was within two or
three points of the other sectors. This could be further support for
the hypothesis that demand in this sector may be suffering as a result
of the scrappage incentive - which is stimulating higher than average
sales of new budget cars." |  | With demand for affordable transport staying high,
values increased in the part-exchange sector for the seventh month
running. The average price improved by £136 to rise to £2,541 - the
highest price recorded since September 2007, with CAP performance
improving by half a point to 96PC. Year-on-year values are ahead for
the third month running, by over £400.
After three months with little price movement, average values for
Volume part-exchange cars moved on by a more substantial £79 (4.5PC) in
July to £1,816 - the highest point on record for two years. CAP
performance improved by 1.5 points to 93.75PC, but remains well off the
peak of 99.98PC recorded in January.
Values for premium part-exchange cars have been rising since November
of last year and in July posted an eighth consecutive monthly increase,
this time of £222 to £4,507 - outperforming the market average with a
5.1PC improvement. Year-on-year values are ahead by nearly £650 (16PC)
and performance against CAP remained exceptionally high at 98.68PC.
Having stalled last month, values for part-exchange Budget cars
actually fell in July, the only sector to do so, to £1,276 from the
£1,339 recorded in June. This mirrors a similar weakening in demand in
the fleet sector, where Budget cars are off the pace set by Volume and
Premium models.
July saw another substantial increase in nearly-new values, with the
average price rising by £745 compared to June to reach £17,127 - the
highest value in nearly two years. This was a genuine rise as the model
mix of Premium, Volume and Budget cars was very similar to that seen in
June. Year-on-year values are now ahead by nearly £3,000 and
performance against CAP Clean improved by over a point to 105.4PC |
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