What CAP are calling ‘auction buzz’ took a tumble earlier this month, as less marketable cars started hitting the market. Dealer perceptions of the ‘desirability of stock’ have also dropped as a result, according to the firm’s Black Book Live system.
That’s not the whole story though, according to CAP. With ‘underlying values’ dropping in September and November last year by 2.8 per cent, this year’s 1.5 per cent drop is – if anything – a comparative increase.
Depreciation has been kept low, though – something CAP puts down to healthy customer appetite, as rated by dealers. CAP says the measure has remained consistent since its introduction in July – lining up well with used values.
‘Black Book Live users are now seeing values reducing on a daily basis, in contrast to the months of stability earlier in the year,’ said CAP’s Mike Hind. ‘This is driven by the increase in supply from sources such as dealer part-exchanges which have remained unsold or which were never suitable for retail.
‘Our measures of the mood at auction and dealer perceptions of stock offered in the open market are a perfect illustration of the underlying dynamic of the current market.
‘Not all values are falling, however, and there are real opportunities for anyone with their finger on the daily pulse of the market to make some quick trade purchase or disposal wins even as the market slows.’