bca pulse report july 2010

8/9/2019 BCA Pulse Report July 2010

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NEWS RELEASE

11 August 2010

BCA Pulse July 2010:Markets relatively static as summer sets in

BCA’s latest Pulse report shows that demand for older, lower value dealer part-

exchange cars is largely unchanged in July, but the fleet & lease sector has

experienced more price pressure. In broad terms, however, the headline average

used car value was relatively static in July, with overall volumes, model mix and

demand levels similar to those seen in June.

As a result, the average used car value at BCA recorded a modest decrease in July,

from £5,802 to £5,784 – a fall of just £18 or a quarter of one percent. Performance

against CAP Clean increased marginally from 94.68% to 94.83%.

For the second month running, a relatively rich mix of cars has disguised some of the

pressures in the marketplace and conversion rates remain fragile. That said, it is not

unusual for some market issues to surface in the holiday season and this should be

judged as typical seasonality – a factor only seen returning in recent weeks.

Average Used Values - All Sectors - 2008 - 2010 by Month

£ 5

, 6 4 1

£ 5

, 7 7 3

£ 5

, 8 5 0

£ 6

, 0 2 8

£ 6

, 2 2 3

£ 6

, 2 1 7

£ 6

, 0 2 1

£ 5

, 9 0 3

£ 6

, 1 8 8

£ 5

, 9 3 9

£ 5

, 9 5 9

£ 5

, 7 9 1

£ 5

, 8 7 1

£ 5

, 6 5 6

£ 5

, 8 0 2

£ 5

, 7 8 4

£ 5

, 5 8 2

£ 5

, 5 7 1

£ 5

, 1 3 6

£ 4

, 8 3 6

£ 4

, 8 2 3

£ 4

, 7 4 3

£ 4

, 8 1 2

£ 4

, 7 6 5

£ 4

, 9 4 9

£ 5

, 1 1 5

£ 5

, 4 6 2

£ 5

, 4 0 6

£ 5

, 4 0 0 £

5 , 8

5 3

£ 5

, 8 8 0

£4,000

£5,000

£6,000

£7,000

J a n

M a r

M a y

J u l y

S e p t

N o v

J a n

M a r

M a y

J u l y

S e p

N o v

J a n

M a r

M a y

J u l y



Average Used Values % vs CAP Clean 2008/2010

99.8798.54

96.1694.83

94.6594.45

97.39 98.87

96.11

94.4595.48

100.25

100.97

99.93

98.54

97.54

103.36103.61

97.23

90.61

89.59

90.92

91.8290.18

90.2592.02

92.7693.58

95.47

96.84

95.99

80

90

100

110

J a n

M a r

M a y

J u l y

S e p t

N o v

J a n

M a r

M a y

J u l y

S e p

N o v

J a n

M a r

M a y

J u l y

Year on year values were behind for the third month running, by £244 – the largest

‘negative’ variance seen this year – compared to the July 2009 figure of £6,028 (the

first time on record that average values had breached the £6K ‘watershed’).

However, values are ahead compared to two years ago – July 2008 saw average

values tumble to £4,949 – nearly, but not quite the lowest point they reached.

Looking in a little more detail at the market sectors, fleet values have fallen from

£7,456 to £7,180, with Part-Exchange stock remaining relatively flat at £2,541 – just

£17 down on last month’s figure. Nearly-new, in contrast, climbed from £18,792 to

£20,039 – an increase of £1,247 (+ 6.6%).

Average Used Values by Sector Rolling Year

£7,180

£2,541

£20,039

£7,456

£7,428

£7,871

£7,593

£7,364

£7,259

£7,025

£7,159

£7,616

£7,850

£7,575

£7,376

£2,558

£2,619

£2,592

£2,705

£2,658

£2,669

£2,549

£2,649

£2,585

£2,762

£2,650

£2,541

£18,792

£20,393£19,751

£19,197

£18,922

£17,837

£17,899

£16,969

£19,160

£18,100

£17,670

£17,127

£0

£5,000

£10,000

£15,000

£20,000

J u l y

A u g

S e p

O c t

N o v

D e c

J a n

F e b

M a r

A p r

M a y

J u n e

J u l y

Fleet/Lease P/X Nearly-New



Average fleet values fell by £276 in July, equivalent to a drop of 3.7%. With model

mix very similar to last month, this was a reflection of softer demand as average

prices fell in two of the three main product sectors. Despite this, sold volumes

actually increased by just over 1% in July compared to June.

Premium fleet models fell by £417 (3.8%) from £10,866 to £10,449, while volume

models dropped from £5,509 to £5,425 – a decrease of £84 or 1.5%. Volume values

have been declining gently since April when they peaked at £5,835. In contrast,

budget fleet/lease car values rose from £3,172 to £3,359, a substantial 5.8%

increase – with the caveat that numbers are low in this sector and model mix has a

disproportionate effect on value.

Fleet & Lease by Sector –June & July 2010

June Avg AGE Avg MILEAGE Avg VALUE Avg CAP Sale vs CAP

Budget 38.98 26,000 £3,172 £3,649 86.91%

Volume 39.63 45,448 £5,509 £6,007 91.70%

Premium 39.15 50,140 £10,866 £11,150 97.45%

July Avg AGE Avg MILEAGE Avg VALUE Avg CAP Sale vs CAP

Budget 37.55 30,905 £3,359 £3,904 86.05%Volume 39.47 45,606 £5,425 £5,937 91.37%

Premium 39.17 51,392 £10,449 £10,743 97.26%

Year-on-year comparisons show average fleet & lease values behind by £196 (2.6%)

with CAP performance down by more than six points.

Values slipped again in the P/X market, but the drop was marginal at just £17. CAP

percentage performance improved by over half a point for the second month running,

reaching 91.07% in July. Having dropped over £100 in June, P/X premium stock

recovered a little of the value lost the previous month with a slim £8 increase in value

to £4,487. Volume cars fell by £40 to £1,744, continuing a trend that has been in

place since April. Budget P/X cars also fell in value – from £1,371 to £1,337 - a

decrease of 2.4%.

Having recorded a sizeable drop from £20,393 down to £18,792 in June, nearly-new

values bounced back to £20,039 in July. CAP performance also improved, from

101.48% to 102.74%.



Values for premium nearly-new cars improved by £262 (just over 1%) to £23,744,

following the £1,800 fall recorded in June. Average values for nearly-new volume

cars improved by £173 to £10,678.

BCA Communications Director Tony Gannon commented “Prices have continued to

be under some pressure in July, especially in the fleet & lease sector, but sales

volumes have held up well in the month, and demand is there for vehicles that are

valued in line with their condition and market expectations. Although we have not

experienced seasonal patterns in the market for some time, we are seeing them now

and should expect these to continue over the rest of this year.”

Published by BCA All material © BCA 2005-2010

For further information on this report contact:

BCA Public Relations Department, Blackbushe Airport, Blackwater, Camberley, Surrey GU17 9LG

Tel:01252 878555 Fax:01252 743447 Email: [email protected]

General Enquiries Tel: 0845 600 66 44 Email: [email protected]

Website: www.british-car-auctions.co.uk

http://www.british-car-auctions.co.uk/

http://www.british-car-auctions.co.uk/

bca pulse report july 2010

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