Almost every category of used car value rose year-on-year in April, according to the BCA, with record average monthly values achieved in the fleet and lease, and part-exchanges sectors.
The overall average value for a used car rose to £8,155, the highest number record by BCA in April, and up £283 compared to April 2015.
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Simon Henstock, BCA chief operating officer UK Remarketing said: "Despite the Easter Bank holidays typically heralding a slowing in the marketplace, buyer demand was strong across the range of vehicles on offer at BCA in April, reflecting an underlying confidence from the trade to acquire stock.
"Average values reached record levels for fleet/lease vehicles and dealer part-exchange cars, despite buyers having plenty of choice. The nearly-new sector – despite being relatively very small – also saw average values rise. The better grade cars are selling strongly and making good money, while vehicles with a high mileage or requiring work need to be priced in line with market sentiment to sell first time."
Fleet and lease car values increased 2.0% year-on-year in April to £9,899, which may have been partly as a result of both the average age and mileage declining over the period.
Part-exchange car values increased 2.9% year-on-year to £4,474, despite the average age remaining relatively static. Average mileage declined by 917 to 68,631, however.
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By GlobalDataThe low volume nearly new sector was the only used car sector to see a decline between April 2015 and 2016, with values dropping from £20,673 to £20,063. This decline came despite both the average age and mileage falling.
Looking ahead, Henstock said: "We are expecting seasonal pressures to make themselves felt during May as volumes rise and demand typically softens. This is very likely to put pressure on price and conversion rates for volume vendors and means sellers should pay attention to remarketing processes and disciplines in the weeks ahead.
"This again underlines the importance of accurate appraisals and realistic valuations to generate buyer interest for sale stock. A typical snapshot of condition ratings would show that less than 10% of cars entered for sale are genuinely Grade 1, yet a far greater percentage are reserved at CAP Clean or above. Unless sellers are pricing in line with condition and market sentiment we may start to see a build-up of unsold stock across the remarketing sector."
