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Steady demand and richer mix boost ex-fleet and lease company car values at BCA

Steady demand and richer mix boost ex-fleet and lease company car values at BCA

Average used car values in the fleet and lease sector rose marginally last month, reaching £10,179, the second highest point on record, according to latest data from remarketing giant BCA.

Retained value against original MRP (manufacturers’ retail price) improved by a half a point to 42.5%, while year-on-year values were up significantly, rising by £517 (5.3%), as both age (38.58 months) and mileage (41,923 miles) continued to decline.  

Despite volumes remaining high, overall values climbed again in February with the headline average value reaching a record figure of £8,822, up £203 (2.3%) on January and up year-on-year by 11.2% (£893) as BCA offered a richer mix of stock with a lower age and mileage profile.  

Buyers, said BCA, continued to compete strongly for stock across the board with well-presented vehicles in ready-to-retail condition being strongly sought after.  
Simon Henstock, BCA chief operating officer UK remarketing, said: “The increase in the average selling price is only partially driven by the market. The richer mix of product offered by BCA, along with the lower average age and mileage profile is also impacting positively on values.”  

He added: “Buyers still have a lot more choice and vehicles requiring repair and refurbishment need to be sensibly valued to compete. There is a noticeable and appreciable improvement in sales performance when vehicles are presented in ‘ready to retail’ condition, for the professional buyer to take away and sell without delay. For cars with cosmetic damage, SMART repairs are a cost-effective option for sellers, meaning their vehicles can be quickly processed and presented in the best possible condition.  

“The market is anticipating increased part-exchange business and greater volumes from fleet and contract hire sources over the coming weeks. With Easter imminent - often a watershed in demand - this could impact on residual values in the weeks ahead. As a result, BCA is recommending that volume vendors appraise their sale stock closely to ensure it is valued in line with market expectations.”