Well balanced supply and demand in November saw average values improve by nearly 4% compared to October, but values in the fleet & lease sector rose by a more modest 1.4%, 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.
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.”
He continued: “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%.