BCA’s latest Pulse report shows that average values fell by £411 in January, equivalent to a 6.3% drop compared to December’s record value, while fleet and lease values dropped by £223 (2.9%) to £7,435.
CAP performance improved by just over one point to 97.58%, with the average age of 3 years and four months and mileage of just over 50,000 remaining reasonably static compared to previous months. Year-on-year values were behind by £304 or 3.9%.
Despite the fall in the overall headline value, January 2012 is ahead of the same month last year by £66 or 1.1%.
This supports BCA’s stated view that December’s record values were influenced by a combination of the shortened trading period, reduced volumes and a richer model mix during the month.
BCA’s communications director Tony Gannon said: “Although January has traditionally recorded an increase in average values, 2012 saw the headline value fall month-on-month as was the case in January 2010, which may have been weather related.
“Despite this, values are up year-on-year and, with reasonably consistent demand, prices should be maintained at an acceptable level over the coming weeks.”
He added: “The rise in average prices at the ‘value-for-money’ end of the market continues unabated and this must be a reflection of the current economic conditions. As household budgets remain squeezed, the increased demand from motorists for affordable transport is driving values upwards.”