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Prices for ex-fleet and lease cars reach new record high at BCA

Prices for ex-fleet and lease cars reach new record high at BCA

Average values for ex-fleet and lease cars accelerated to a new record high, rising by £276 (2.7%) to £10,455, at BCA last month, according to the company’s latest data.   

Retained value against original MRP (manufacturers’ retail price) improved by a point to 43.4% with both average age and mileage down fractionally at 38.65 months and 40,803 miles versus March 2016. Year-on-year values were up significantly, rising by £714 (7.3%). 

Average values also improved in both the nearly-new and part-exchange sectors month-on-month pushing hammer prices across all sectors to a record high for the second consecutive month - £8,850, which was up from £8,822 in February and from £7,838 in March 2016 as BCA offered a richer mix of stock with a lower age and mileage profile.  

BCA reported steady demand from professional buyers and improved conversion rates with average age and mileage across the three sectors monitored falling by four months to 56.3 months and 3,000 miles to 49,441 miles respectively. 

Simon Henstock, BCA chief operating officer UK remarketing, said: “BCA reports a continued richer mix of stock in the auction halls which is helping to keep average values firm. Buyer demand was significant in March and conversion rates rose as a result.  Reflecting seasonal patterns, we saw greater volumes from dealer part-exchange sources and expect this uplift to continue in the weeks ahead.”

He added: “However, as volumes remain high and with Easter imminent, we should expect to see the dynamics in the market change quite noticeably over the coming weeks. Easter is typically seen as a watershed in the marketplace and while demand remains strong, it has waned from the peak we experienced in March.  

“In a more crowded marketplace, buyers will focus on the ready-to-retail cars and that is the benchmark that will see the best returns. This means not just retail standard presentation and condition, but ensuring vehicles are offered for sale with V5, MoT, service history, spare keys, locking wheel nuts, sat-nav disks and any other items that make the car complete.”  

Mr Henstock concluded: “Vehicles in poorer condition need to be realistically priced to generate interest in a crowded marketplace. It is important to appraise and value vehicles accurately in the current market and it would not be a surprise to see some pressure on average values in the short term.”
  • Auction giant Manheim reported a softening of average prices in the fleet segment in March due to an increase in the volume of ex-fleet cars entering the market. Average selling prices were down by 2.7% to £9,941.