The average price of a car sold at BCA rose 8.2% year-on-year to £8,341 in July, according to the BCA Pulse report.
The headline figure could be misleading, however, as the growth in value was down to a change in model mix. BCA stated that the higher value ex fleet category had a larger market share in July 2016 compared to the same month last year.
In fact, the ex fleet/lease sector actually saw a small drop in July compared to the same month in 2015. An average value of £9,665 was £4 below the value recorded in July last year. This was despite the average car being almost a month younger in 2016 (40.01 months in July 2015 compared to 39.08 months in July 2016), and with over 3,000 less miles.
In contrast, dealer part ex values witnessed a 5.0% year-on-year growth to £4,495, with age remaining static and mileage declining slightly in the period.
The nearly-new sector saw a small year-on-year increase in values, from £21,250 in July 2015 to £21,339 in July 2016, though as usual model mix had a significant effect on values, due to the low volume.
Simon Henstock, BCA chief operating officer, UK Remarketing, said: “Supply and demand remain well balanced, with conversion rates improving in July, despite the typical summer slowdown the market experiences once the summer holiday period begins.
“Current market conditions make it even more important to ensure vehicles are properly appraised and sensibly reserved. There is little to be gained by over valuing cars, particularly when there is increasing competition for the buyer’s wallet.”