Used car values continue to rise in the used car market according to BCA’s latest Pulse report, as December 2013 achieved the highest monthly average since Pulse began reporting in 2005.
BCA’s data shows that average values rose to a new high in December as used cars averaged £7,573 across the board, a month-on-month rise of £84 (1.1%) compared to November.
Year-on-year, December 2013 was ahead by £212 or 2.8%.
Average mileage and age both rose slightly over the month as BCA sold a higher percentage of dealer part-exchange vehicles.
Average performance against CAP Clean was marginally higher at 96.8%, both month-on-month and year-on-year.
Simon Henstock, BCA’s UK operations director, said: “December is a short month for trading and the remarketing sector continued to experience a reduced supply of retail-ready stock.
“Model mix tends to change as fleet & lease cars can be held for the New Year, while dealers will often retain part-exchange vehicles to meet the January demand from retail customers.
“This aside, December continued the long term trend of rising average values in the wholesale markets and a new record was established, beating the previous highpoint which was seen exactly 12 months earlier in December 2012.”
Henstock said there are no signs that demand for retail quality used stock is going to ebb in 2014 and BCA expects values to remain strong.
Sourcing vehicles will continue to be a major concern for dealers and if the economy continues to improve, increasing retail demand could mean there is even more competition for stock in the remarketing sector.
Fleet & lease cars averaged £9,162 in November, the second highest value on record despite falling by £139 (1.5%) over the month. Values were up by £653 (7.6%) year on year.
CAP performance fell back from last month to 95.84% but was ahead year-on-year. Retained value against original MRP (Manufacturers Retail Price) was down a point compared to November, but up year-on-year.
Average dealer part-exchange values fell by just £15 (0.4%) in December, following three consecutive months of record prices. Year-on-year, values were ahead by £278 (7.8%) compared to December 2012 with average age rising and mileage falling marginally over the year. CAP performance improved to 95.15% in December, up slightly compared to November but down, year-on-year.
Nearly new values reached record levels in December at £22,788, but volumes remain very low and model mix remains the most significant price factor.