The average value of a used car sold at British Car Auctions (BCA) in November was £8,075, the highest value of 2014, according to the BCA Pulse Report.
This was also up £586, or 7.8% compared to the average value recorded in November 2013. Year-on-year the average age fell from 60.23 months to 58.80 months, while mileage fell from 55,098 miles to 56,337 miles.
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Sale versus CAP fell from 96.57% in November 2013 to 95.20% in November 2014.
Simon Henstock, BCA UK operations director said: "With many retailers anecdotally reporting reduced footfall in November, demand has softened somewhat as the year end approaches, which is very typical of the season. Balancing this, there remains a shortage of good quality, retail-ready stock and this is keeping the values of these premium vehicles on a high."
"What we are seeing is the development of a two-tier market, where the best vehicles sell quickly for often exceptional values, while the less attractive or over-valued cars struggle to attract bids. If less desirable cars in unattractive colours, with a poor specification and needing paint and refurbishment are overvalued, there is every chance they will remain unsold, putting pressure on conversion rates. Volume sellers particularly need to pay attention to this and reappraise and revalue any vehicles that are proving difficult to remarket."
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By GlobalDataGrowth in values for fleet and lease cars was somewhat slower than average at 3.5% year-on-year in November. The slower growth was partly attributable to the fact that mileage increased from 45,436 miles to 47,257 miles over the period, while the average age also increased, from 39.28 months in November 2013 to 39.63 in November 2014.
Dealer part exchange values increased 8.5% year-on-year to £4,188 in November 2014. Over the period, the average age increased from 87.58 months to 88.76 months and mileage increased from 73,255 miles to 71,269 miles.
In the more volatile nearly new sector, BCA reported that the average value increased year-on-year in November from £21,433 to £21,617. November was also the first month to show month-on-month growth since August, when values hit a high of £22,876.
In 2013 the average used car value spiked in December to £7,573, which was the highest recorded value at that point. Henstock said this was due to a shorter trading month and an ongoing dearth of retail stock.
He said: "There will be some interesting dynamics at play between now and the end of the year. In particular, independent non-franchised dealers and traders are often active during December to ensure they have attractive stock to tempt customers in the New Year."
