Well balanced supply and demand in November saw average values improve by nearly 4% compared to October, according to BCA’s latest Pulse report.
On average, values rose by £238 (3.9%) to £6,201, the second highest value on record since the market recovered in 2009.
Most of the increase was felt in the part-exchange sector where values improved by over 4% to establish a new record monthly average figure of £2,877. Values also rose in the fleet & lease sector, but by a more modest 1.4%, while nearly-new models dropped in value by 4.1%, largely as a result of model mix in a very low volume sector.
Year-on-year, November 2011 is a substantial £409 (7%) ahead of the same month in 2010, and £298 (5%) ahead of the figure recorded two years ago.
BCA’s Communications Director Tony Gannon commented “November provided a relatively strong performance, with a good balance between supply and demand leading to improved used car values in the bigger volume sectors of dealer part-exchange and fleet/lease. While there was a fall in the average value of nearly-new cars this was entirely the result of model mix, as supply remains short in the wholesale arena.”
“Otherwise, the overall picture remains very similar to the previous month, with healthy demand for Grade 1 and 2 cars, but little appetite for cars in Grade 4 or 5 condition – unless they are realistically valued to sell.”
Fleet values improved in November (after falling in October) and reached £7,388 – a rise of £101 equivalent to 1.4%. CAP performance fell marginally to 96.36% and year-on-year values were ahead by £272 or 3.8%.
The part-exchange sector saw average values continue to climb as values improved by £113 (4.1%) to establish a new record monthly average figure of £2,877. Year-on-year figures are ahead by £229 (8.6%). Despite this, the performance against CAP Clean fell from 93.2% to 92.6%.
Average values in the nearly-new sector fell from £19,786 to £18,597, a drop of £829 or 4.1%. Model mix is largely responsible for the changes in this sector as volumes are so low. Performance against CAP Clean fell by one point to 101.2%.