A sharp reduction in used car trade values over November ended what had been a strong run in the market that had lasted for most of 2014, according to CAP Automotive.
According to CAP, the average trade value reduction over November was 2.9%, month-on-month, the biggest fall since June 2011. This translated to approximately £300 for an average three- year- old vehicle with 60,000 miles.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
All market segments fell compared to October, ranging from city car values, which fell £124, to luxury executive cars, where the average value fell £1,840.
Convertible values, which typically suffer in winter, fell £518 in November. 4X4s fared better than most according to CAP as the average value fell £160.
Derren Martin, senior editor of Black Book Live, said there were four reasons for the fall: "Firstly, supply levels have increased due to the influx of part-exchanges and fleet returns generated by September’s 10-year registration high, followed by further high registrations in October.
"Secondly, retail demand has dropped off as it tends to do in the run up to Christmas, but this year it has been more widely reported."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHe added that many retail forecourts are full and the fact is there are more cars being advertised than there were at the same time in 2013 and little or no requirement to replenish stocks.
"Finally, used car prices are high. Depreciation year-to-date has been less pronounced than it was to this point last year and so prices are generally higher than they were 12 months ago."
