Average used car values rose marginally in February by £11 compared to January’s figure to reach £5,985 and they are at the highest point recorded since December 2009.
According to BCA’s Pulse used car market report performance against CAP Clean dropped by over a point to 97.4%, down from the 98.6% achieved across the board in January.
Year-on-year, February 2011 is ahead of the same period last year by just £26 – less than half of one percent.
However, values came under pressure in both the bigger volume sectors - fleet and lease values fell on average by £186 (-2.4%) while the part-exchange sector fell by £39 (-1.3%). In the more volatile nearly-new sector where mix is critical values improved notably over January, rising by £2,208 (12.5%).
With entries rising and demand softening, conversions have come under increasing pressure in February.
Fleet values fell by £186 to £7,553 in February, with CAP performance dropping by just under a point to 97.7%. Year-on-year values are ahead by £189, equivalent to a 2.5% rise.
Model mix will undoubtedly have had a part to play in the average value decline, with a lower percentage of higher value premium cars sold in February compared to the previous month.
There was a smaller decline in the part-exchange sector, which fell by £39 to £2,798, halting a run of three consecutive monthly value improvements.
Despite the fall, February’s average value was the second highest on record, underlining the relatively high levels of demand in the budget car sector. Performance against CAP fell back by nearly three points over the month to 92.7%. Year-on-year, the February 2011 average value was £140 (5.2%) ahead of last year.
The nearly-new sector saw values rise sharply, with over £2,200 added to the January figure to reach £19,827. Model-mix was largely responsible for the increase with sold volumes of higher-value premium cars increasing by nearly 20%, while the number of volume models sold decreased by around 8%.