Observations on Used Car Values by Tim Naylor, BCA

Values continue to rise in the used car market, as December achieved the highest monthly average since reporting began in 2005.
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 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.
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 and 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.

The markets remained very active in December, despite the shortage of stock.
BCA also offered hundreds of vehicles between Christmas and New Year from a range of major blue-chip vendors via the Buy Now digital channel.
Fleet and lease cars averaged £9,162 inDecember, the third-highest value on record
despite falling by £139 (1.5%) over the month. Values were up by £653 (7.6%) yearon-year.
CAP performance fell back from last month to 95.84%, but was ahead year-on-year.