Auctioneer BCA reported very little
fluctuation in used car prices in March, but said increased sales
volumes and falling conversion rates were making life more
difficult for fleets selling large volumes of cars. Conversion
rates fell by between 15 and 20 points between mid-January and the
end of March.
Volumes of cars auctioned rose by a
significant 11.5% compared to February, underlining a March market
that was reasonably bullish – particularly when placed in context
of the 4% drop in volumes experienced between January and
February.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
BCA communications director Tony Gannon
said: “With greater volumes coming into the market and demand
staying relatively flat, we are seeing more re-entries and greater
numbers of unsold vehicles. In addition, there has been no real
improvement in the consumer sector and retail activity is
relatively slow. All these factors combined mean that professional
buyer confidence is relatively fragile, and with the summer months
ahead – typically quieter if previous years are to be believed – we
anticipate more pressure on conversions and values in the weeks
ahead.”
Average used car values fell in March, though
there was negligible price pressure in the big volume sectors of
fleet and lease, and dealer part-exchange vehicles. A fall in the
nearly-new sector average value was largely due to changing model
mix over the month. Values across the board fell to £5,752, down by
£233 (3.8%) compared to February’s figure of £5,985.
Year-on-year, the average value of cars sold
by BCA during March 2011 was £39 (0.6%) behind March 2010. The
current average value is currently at the lowest point recorded
since May 2010.
Performance of used car values against CAP
Clean dropped by one and a half points to 95.9%, down from 97.4% in
February. In March 2010, performance relative to CAP Clean averaged
98.5%, so year-on-year figures are down by just over two and half
points.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
