Tim Naylor, who edits the monthly Pulse report, looks at the latest set of BCA figures for Motor Finance in terms of the wider market
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Up to one year old
A much clearer picture of price pressure in the market is seen in Mays figures. Average used car values fell by just over £200, from £5,871 to £5,656, while performance against CAP Clean fell by one and a half points. Year-on-year values are behind by £117 the first time the market has seen this since February 2009, underlining there has been a significant shift in market dynamics over the past 8-12 weeks.
Into the detail of the body-shape price movements, and there continues to be a notable difference in price performance between the nearly-new sector and older cars.
With volumes of sub-one year old stock remaining slim, model mix has an increasingly influential effect on price. Saloons present the seemingly impossible trick of both large and small values improving on last month, while the sector as a whole has declined.
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By GlobalDataThere was a similar issue in the large hatchback sector, where values increased by 13% although much of this was due to a richer model mix. There was renewed interest in the MPV market, which has stuttered somewhat earlier in the year.
Both larger and smaller examples enjoyed a healthy level of demand during May. Estate values fell back by two percentage points, in line with the broader market.
The improving UK weather seems to have finally caught up with nearly-new 4×4 values, which declined albeit marginally for the first time in many months.
Coupé values seem to have run out of steam and did not have the benefit of any specialist sales support in May. Convertible values fell but still performed reasonably well, while roadster values actually improved by over three points.
One-to-three years old
Greater evidence of price pressure can be seen in the one-to-three-year-old sector with average values for every body type in decline over the month. Despite this, there was no evidence of undue price pressure in any particular sector and overall monthly percentage changes remain in a reasonably tight cluster.
Three to five years old
There was continued price pressure in the three-to-five-year-old car sector, with three body types moving up in average value and six declining.
Overall values moved very much in line with the market average, down by around 1% or 2% this including saloons, hatchbacks, MPVs and estates all the staples of the market.
In the niche sectors, there were improving values for 4x4s, but declining values for coupes, roadsters and convertibles.
