Significant shift in model mix
mitigated wider price pressure at auction houses in
June.
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Tim Naylor, who edits the
monthly Pulse report, looks at the latest set of BCA
figures for Motor Finance in terms of the wider market
.
Against all expectations, used car
values at BCA showed a modest increase in June, with average values
recovering most of the loss sustained in May to reach £5,802 – a
£146 improvement over the previous month’s figure of £5,656.
Performance against CAP Clean was broadly in line with last month
at 96.68%.
Year-on-year values, however, remain
behind for the second month running, but by a lower margin than
seen in May; the spread was £48 for values recorded in June 2009
from June 2010, compared to £117 for May.
The primary driver of the value
recovery was a change in model mix that saw a 16% uplift in the
volume of premium fleet cars sold by BCA. This volume increase in
higher-value stock was largely responsible for the overall increase
in the average fleet/lease value and mitigated against price
pressures across the board.
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By GlobalDataDealers are saying that retail sales
have eased off and this is reflected in the auction halls and
online bidding for replacement vehicles. However, demand is far
from flat, but has become more selective – meaning that
presentation and condition becomes increasingly
important.
In the detail of the body shape price
movements, there continues to be a notable difference in price
performance between the younger and older cars. Model mix has an
increasingly influential effect on price, particularly in the last
month.
Sub-one year large saloons had a
strong month based on rising values and improved CAP performance. A
number of specialist premium car sales staged by BCA will have had
a large effect here. Smaller saloons were not as desirable as their
larger cousins last month, and values broadly kept pace with the
market.
Model mix was also important in the
hatchback sector, where a volume of high value models were sold by
BCA last month. Likewise, 4x4s, coupes, convertibles and roadsters
all outperformed CAP by often significant percentages.
There was renewed interest in the MPV market,
with larger examples doing particularly well.
