Values of fleet and lease cars reach record high in March

(Posted on 12/04/18)

Auction values for fleet and lease cars sold at BCA hit a record high in March with average used car values up by £818 (9.2%) compared to a year ago.

Even with the early Easter break impacting the market at the end of the month, the average value of a used car sold at BCA rose by £170 compared to February, a 1.7% uplift. 

Fleet and lease stock posted a new record value of £11,122 in March as demand increased.  Values improved £330 (3.0%) over the month, with retained value against original MRP (Manufacturers Retail Price) improving by a point to reach 44.22%.  Year-on-year values were up by £667 (6.3%), with age static and mileage declining.

The headline figure of £9,668 is the second highest on record and BCA’s data shows used car values have been rising steadily during 2018, reflecting a richer mix of cars available at BCA and the sustained level of demand from buyers.

Stuart Pearson, MD UK remarketing at BCA said: “Buyer demand was strong in March, resulting in average values reaching record levels and excellent conversion rates around the 24-strong BCA network.  Reflecting seasonal patterns, we saw greater volumes from both fleet/lease and dealer part-exchange sources and this uplift is likely to continue in the weeks ahead.

“With Easter now behind us, we expect demand to be maintained well into April as professional buyers compete for stock.  Retail used car activity is reportedly very strong, as buyers look for good value used cars and that is being helped by the increased availability of finance in the used sector.”

Manheim also saw strong demand from buyers in March, driving record conversion rates for its van events.
 
Average sale prices remained healthy with the average selling price holding firm at £5,643 - just a 4% decrease on February, attributed to higher average mileage and age across vehicles. 
 
Speed of sale was the quickest on record in March, at 14 days (average) for all vehicles sold, a decrease of seven days, compared to March 2017. This resulted in the strongest conversion rate of the year as 82% of all vans that were offered sold first time. 

Matthew Davock, Head of LCV at Manheim, said: "The reduction of overall volume in the van market arena has once again fuelled the appetite to buy, proved by the data showing 82% of vans passing through Manheim's lanes are selling first time.
 
"We saw more than 1,600 unique LCV buyers purchase at our van events during March, and the footfall passing through our auction halls remains very healthy. 

"The strongest performance yet again was in the £5,000-£5,999 and £8,000-£9,999 price bands, which is a continuing trend in the Manheim CV lanes. We have seen a 3-5% premium, on top of current market guide measures, as buyers look for the highest quality retail mileage stock.
 
"Looking back at the market this time last year, vans were selling for £313 less, and even in March 2016, we were seeing sales prices down £869 compared to today's values (with age and mileage remaining very similar. It's clear the marketplace is super-heated at present and we expect this to continue into the next quarter.
 
"As we enter April, we predict volume will rise to the highest point seen all year, and the market will continue to show strength and stability. With any predicted increase in market volume, we encourage all vendors to remain extra focused around vehicle return damage and market reserve setting. Vendors that get this combination right will continue to see both record performance and conversion rates."