The average value of used vehicles continued to grow in May, according to the BCA Pulse report.
The average vehicle overall sold at BCA in the month was £8,261, up £488 or 5.8% year-on-year. This was partly a result of the average age declining from 60.88 months in May 2015 to 58.06, and average mileage decreasing from 55,029 to 52,292, year-on-year.
Following four consecutive month-on-month increases in value, the fleet & lease sector reached a record value of £9,906 at BCA in May.
This was up 1.9% compared to May 2015. Average age remained fairly stable between the two periods, dropping from 39.90 months to 39.14 , however average mileage saw a more notable drop – from 45,732 in May 2015 to 43,637 in May 2016.
There was a similar story in the part-exchange market, where four months of month-on-month growth meant values reached a record average of £4,490 – 2.1% up year-on-year. This came despite the average vehicle in the sector being almost half a month older than a year ago. Average mileage dropped slightly, from 69,744 in May 2015 to 69,365 in May 2016.
The low volume nearly-new sector was the only one which saw year-on-year declines, falling from £21,039 in May 2015 to £20,494 in May 2016. The BCA said model mix had a significant effect on the market.
Simon Henstock, BCA chief operating officer UK Remarketing commented "We are seeing a two-tier market develop where the very best presented cars are attracting a lot of attention from buyers, while poorer condition examples need to be realistically valued if they are to compete. Ready-to-retail stock is very desirable and it is noticeable how the best grade and specification cars in attractive colours can outperform the rest of the market by some margin.
"In contrast, vehicles in poor condition and at above average mileage should be carefully appraised and sensibly valued in line with the condition report in order to attract buyers and sell first time. Where appropriate, consider SMART repairs for quick wins on damage, particularly for scuffed alloy wheels, chipped or scratched paint, minor dents to bodywork and missing trim."