F&I Management & Training

Average used car values rose for the sixth consecutive month in April, according to the latest BCA's Pulse report.

The average auction values in April increased to £5,641, a rise of £59, or 1 per cent, over the £5,582 recorded in March. BCA suggested this indicated the market is "beginning to settle" pointing out that earlier in the year there were monthly rises of up to £400+.

Year-on-year April values are ahead of the April 2008 average figure of £5,406 by £235 or 4.3 per cent. It is the second month running that the year-on-year figures have shown growth, following falls throughout much of 2008.

Stock remained at relatively low levels in April, with part-exchange volumes falling after showing some growth last month. Strong demand from trade buyers once again kept sale conversions high, but BCA described buyer activity as "more muted than it was in February and March".

"April has been something of a surprise, as all the signs were that the market was beginning to soften. In fact, demand has held up exceptionally well, resulting in another modest, but welcome, increase in average value, month-on-month," said 
BCA Communications director Tony Gannon.

"Compared to April last year, average values are ahead by more than 4 per cent, which indicates the strength of the recovery and suggests values are very much back on track. In fact the market has improved by more than 18 per cent from the bottom of the slump last October," he said.

DATED: 13.05.09

FEED: MT