Fleet of Wheel as Prices Rise

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14 April 2016 | Updated 01 January 1970

The latest BCA Pulse report shows that both fleet and lease and part-exchange values rose in March with both sectors recording value growth over the year.  

However, it was not all good news in the report as nearly-new values fell, although model mix has a significant role to play in this low volume sector and the headline average value of a used car fell in March as a result of changing volume mix.  

Compared with February 2016, the headline value fell by £91 (1.1%) to £7,838 which reflected a change in the volume mix over the month as dealers sold greater numbers of part-exchange vehicles following on from the new registration plate on 1 March. Year-on-year, however, the headline figure was up by £314, equivalent to a 4.1% rise.  

“BCA reports a strong used car marketplace in March with buyers being exceptionally active both in the auction hall and online,” remarked Simon Henstock, Chief Operating Officer, BCA UK Remarketing. “Reflecting seasonal patterns, we saw greater volumes from dealer part-exchange sources and this shift in the market mix had an impact on the headline value."

He went on to state that the plate change period inevitably saw volumes rise substantially in the wholesale markets and stock levels will traditionally remain high until at least early May. Any uplift in volume had the potential to change the balance in supply and demand and could have an impact on values as buyers simply have more choice.

“As volumes increase, we are advising sellers to pay attention to the basics of remarketing,” said Henstock. “Presentation and preparation are a given and it is vital to properly identify and declare the specification, particularly if there are a lot of base-spec models about. Providing the service history at the point of sale is also important and can have a real, tangible effect on the potential prices vehicles might achieve.”

Picture: The latest BCA Pulse report shows a mixed picture but still with an increase in volumes and prices

Article written by Robin Snow | Published 14 April 2016

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