The monthly used car value was £4823, the highest since July. It is because dealers are selling fewer lower-priced part exchanges which, overall, increases values.
Year on year values are still down, by £689. In November, BCA auction values fell against trade guide values – average value against CAP Clean dropped by 1.3 points, to 89.5 per cent.
Within sectors, fleet & lease fell £128 during the month, and part-exchanges, £56. This means fleet & lease is down year on year, by £918 – a 14 per cent drop. Performance against CAP is down almost 4.8 per cent.
BCA doesn’t predict any upturn in the short term, either. This is because economic conditions are hard, and consumer confidence consequently low.
‘In recent years, December has been a period where the volume buyers dominate proceedings, and seek to acquire stock in advance of the traditional January price rises,’ said BCA communications director Tony Gannon.
‘However, based on current trends, there is little to indicate that market values are about to pick up as they have in previous years. This means, in real terms, used cars are going to remain more affordable than they have been in many years.’
It’s the budget end where trade is most brisk. ‘But there is a definite watershed in demand at around £5000 – the upper limit of affordability, when finance is hard to come by for retail buyers.’