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Car and van values firm up in December
publication date: Jan 18, 2010
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author/source: Robin Roberts
Used car and van values have unexpectedly picked up through one of Britain’s leading auction companies. BCA's latest Pulse report shows that average used car values increased in December, following three months where values have fallen. Much of this was due to a change in model mix that saw a greater percentage of higher value nearly-new cars sold, combined with a seasonally stronger market in the run-up to Christmas The overall average value for cars sold in December was £6,188 - an increase of £185 (3.1%) compared to November's figure of £5,903. CAP comparison values also improved to 96.11% from the 94.45% recorded in November. Values remain well ahead year-on-year by £1,352 (a significant 27.9% increase), although as prices were beginning their recovery 12 months ago, it is likely that this figure will reduce in the months ahead. Despite the overall increase, average values actually fell in two of the three main product sectors - Fleet & Lease values fell by £134 to £7,025 (down 1.9%) and Part-Exchange values fell by exactly £100 to £2,549 (down 3.7%). Nearly-New values increased by £930 to £17,899 (up 5.4%) - largely due to a shift in model mix towards higher value premium models that will have had an effect. BCA's Communications Director Tony Gannon commented "December often sees a surge in prices as professional dealers acquire stock in readiness for the New Year." He added "Supplies of fleet/lease and part-ex cars available in December were down broadly in line with the reduced trading period, although the numbers of nearly new cars remained fairly static, month-on-month. This changing mix of higher value cars in an active market saw average prices rise for the first time since August. However, average values in the bigger volume Fleet and Part-Exchange sectors continued to decline." Gannon commented "Looking to early in the year, January generally brings a further uplift in activity, but sustained prices rises over a number of months - such as those seen in 2009 - are unlikely to be repeated, simply because the market had fallen so far and needed to recover. A year later we are not in the same position and the recovery has taken place." "However, there are suggestions that the late Winter and early Spring months could bring further stock shortages, which tends to suggest values could rise in Quarter 1 as a whole - providing the demand is there." "If the economy continues to recover, that will give consumers the confidence to change their car. There is a view that we are on an upward curve, but it looks to be very gradual and protracted. However, it is at least progress and some of the benefits will be felt in the retail used car market, which should be good news in the wholesale remarketing sector." December displaced November's place in the record books to deliver a new high for average LCV values as buyers continued to compete strongly for commercial stock right through to the year end. Another £100 plus was added to average van prices over the month as the £4,000 watershed was breached for the first time on record. Average values increased from £3,902 to £4,008 to establish a new high point for LCVs. The rise of £106 was equivalent to a 2.7% increase - and marks the end of a year that saw average values start below £3,000 in January and end above £4,000 in December. Over the year values increased by 37% - a mark of both how strong the demand was in 2009 and how far prices had collapsed over the previous year. Model mix was broadly the same, although there were reduced numbers of higher value nearly-new vans for the second month running. Volumes were slightly down on last month as would be expected in a short working month. Despite the average price increase, performance against CAP continued to fall for the third straight month, settling at 95.21% and representing another three points off last months average. Overall CAP performance has fallen by nearly 10 points since September. |
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