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Mixed messages reported in used car market, says BCA
publication date: Oct 8, 2009
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author/source: Robin Roberts
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BCA is reporting mixed messages from the used car market in September.
It
says overall used car values decreased for the first time since last
November and price performance varied significantly between the first
and second halves of the month. Supply also increased significantly
during the month, for the first time this year.
The overall
average value for cars sold in September was £6,217 - just slightly
down on the August figure of £6,223.
However, a change in mix was the
main driver of this change, as fewer high-value nearly-new cars and
greater numbers of lower-value part-exchange cars were sold in
September, effectively reducing the average price. |
Average auction values for Volume fleet & lease
product continued to improve – as they have every month this year – to
reach £5,886, an increase of £212 or 3.7pc.
Performance against CAP
Clean for volume fleet & lease cars fell back by a point to 98.57pc. Premium
fleet product in September also saw average values rise, from £10,826
to £11,074, with values continuing to outperform CAP Clean values at
just under 101pc.
Values for fleet & lease Budget models
remain the weakest, with the average value falling from £3,722 in
August to £3,585 in September. The CAP performance of just over 96pc
remains several points off the pace set by volume and premium fleet
cars.
Values increased in the part-exchange sector for the ninth
month running, rising by 4.2pc to £2,762 and averaging 96.72pc of CAP
Clean. Year-on-year, average values are ahead by £678 or 32.5pc.
Average
values for Volume part-exchange cars continued the improvement seen in
recent months. September’s figure increased by £81 or 4.4pc over August
with CAP performance improving again to 94.54pc.
Values for
premium part-exchange cars rose by a similar amount, reaching £4,796
and achieving a CAP comparison of just under 99pc.
Values in this
sector have now risen for ten straight months.
Values for
part-exchange Budget cars fell back to £1,359 in September.
This is
consistent with the Fleet & Lease sector where budget car values
also fell.
September saw another substantial increase in nearly-new
values, with the average price of £18,100, representing a rise of £430
over August.
The average CAP performance continued to exceed 104pc of
Clean values. | | Average values
actually increased when split into the three main product sectors -
Fleet & Lease rose by 3.5pc to £7,850, Nearly-New increased by
2.4pc to £18,100 and Part-Exchange values went up by 4.2pc to £2,672.
However, performance against CAP fell marginally, from 100.25pc to 99.87pc of Clean values for all stock.
BCA’s
Communications Director Tony Gannon said, “The headline numbers do not
tell the whole story. Internal BCA data shows that there was a marked
shift in the market that took place in mid September.
Average values
for the two weeks commencing the 21st and 28th September fell sharply
as did performance against CAP. Weekly fluctuations are not uncommon
and so this two week period should be viewed with caution.
“However,
of greater significance, the supply of used cars increased dramatically
with BCA stock increasing in the month by over 20pc - the first such
notable increase this year.
Vehicle entries into auction rose in
parallel and conversion rates fell.
Gannon added, “This is the
most noticeable shift in market dynamics since the first days of
January.
Conversion rates have also been affected by a softening in
demand with dealers reporting a reduction in footfall and used car
transactions as consumers hesitate in response to higher prices.
“These
factors have combined to take some of the heat out of the market but we
are still seeing well-presented and nicely specified cars and vans
achieving good results.” | | | | | | |
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