Used Car Values Fall for Second Month Running Market Dynamics Are Changing, Says BCA

LONDON – November 11, 2009: BCA’s latest Pulse report shows that average used car values have decreased for the second month running – the first time there have been consecutive monthly falls since August of last year. The overall average value for cars sold in October was £6,021 – a fall of nearly £200 compared to September – but still the fourth highest monthly figure recorded in over two years.

Unsurprisingly, values remain well ahead year-on-year by £1,278 (27%), highlighting just how strongly values have recovered in 2009.

While last month’s fall was largely due to a seasonal change in model mix at BCA as fewer high-value nearly-new cars and greater numbers of lower-value part-exchange cars were sold, market dynamics have driven the fall in October.

In fact, average values have fallen in two main product sectors – Fleet & Lease values fell by £234 to £7,616 (down 3%), while Part-Exchange values decreased from £2,672 to £2,585 – a fall of £88 or 3.3%. Nearly-New values increased by £1,060, although there was a shift in model mix towards higher value premium models that will have had an effect.

Performance against CAP fell quite sharply across the board from 99.87% of Clean values for all stock to 95.48%.