Apr 12 2012
Rising volumes, seasonal pressures and the changing sector mix has seen the average values of used cars drop by as much as 4.3 per cent (£270) last month, while fleet and car leasing values increased to their highest level in almost two years, according to the latest Pulse report from the BCA.
Values fell from £6244 to £5974 across the board, something which is perfectly in line with traditional seasonal pressures, with values in March having fallen in comparison the previous month for every year since the Pulse reports began seven years ago in 2005, (with the sole exception of 2009, when used values accelerated rapidly from their price crash in 2008).
Overall sold volumes rose by more than 14 per cent in comparison with February, with the majority of this increase coming from lower value dealer, part exchange vehicles. The change in mix toward cars of lower values is primarily responsible for the drop in the headline number. March 2012 is 3.8 per cent (£222) ahead of 2011 on a year on year basis, with used vehicles averaging more than 97 per cent of CAP Clean last month, with age rising from 61 months to more than 63 months, while mileage stayed around 59,000 miles.
"Although the headline value fell, this was as a result of increased volumes in the lower value part exchange sector," says Tony Gannon, the communications director of BCA. "However, as sold volumes increased quite sharply over the month, up 14 per cent compared to February, it was noticeable that both conversion rates and values were falling weekly during March."
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