Fleet News

Used car price realignment continues

The fall in used car values is continuing, with both of the largest auction companies reporting declining prices in November.

Despite this, ex-fleet car prices are over 22% higher than those seen this time last year, when residual values were only at the start of their recovery.

The decline in prices last month – the third consecutive month that prices have fallen – is a signal that the market is returning to normal seasonal patterns, said BCA.

Its November analysis shows average used car values fall to £5,903 – down £118 (2%) compared to October.

Although average values of used fleet and lease cars fell by £457 to £7,159 (down 6%).

“The marketplace appears to be resuming a more typical pattern of activity,” assured BCA’s communications director Tony Gannon.

“In previous years, September was often a peak in the annual price cycle, with values falling slightly in the following months of October and November and that is exactly what has happened this year.”

Manheim Auctions’ latest analysis also reports a fall, although only by £4 or 0.06% to £7,169 compared to October.

However, its figures for ex-fleet and lease cars are more inline with BCA figures, showing a decline of £207 (3.2%) to £6,206.

Within the fleet sector, examples of notable decreases in average values included small hatchbacks, medium family, large family and compact executive models, which fell by 0.6% (£29 to £4,446), by 1.9% (£111 to £5,593), by 6.8% (£362 to £4,959) and by 3% (£250 to £7.986) respectively.

Mike Pilkington, managing director, Manheim Auctions and Remarketing, said: “These results confirm the continued underlying strength in the market despite falling retail demand at this time of year; indeed wholesale purchasing activity was vigorous in the month from some dealers as they anticipate rising values and stock shortages in the New Year.”
 

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