Average used car values were slightly lower in December but still the second highest on record, British Car Auctions’ (BCA) latest Pulse Report has revealed.

The headline average value of a used car fell to £8,007, 0.8% lower than the November record. However year-on-year figures show a substantial increase, as values soared by 5.7%.

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The reverse scenario occurred with performance against CAP Clean, as the month-on-month increase of nearly a point to 96.04% was not enough to reverse a decline in relation to December 2013, which was 96.80%.

Year-on-year, the average age of used cars fell from 60.69 months in December 2013 to 58.93 months in December 2014. Over the same period, mileage fell from 57,067 miles to 56,414 miles.

The report attributed December’s fall in headline average value to a change in market sector mix and model mix as a larger number of dealer part-exchange cars were sold. This also resulted in average mileage and age rising marginally over the month.

The values of cars in this category marked a 7% increase compared to the same month in 2013 and reached an average of £4,113.

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Simon Henstock, BCA’s UK Operations Director, said: "December is a short month for trading and both the market sector mix and model mix tend to change quite significantly. Fleet and lease stock is typically in more limited supply as the year-end approaches, whilst dealers continue to sell part-exchange vehicles as a result of their ongoing retail activity."

Fleet and lease stock had a lower volume due to many corporate vendors holding prime stock for the New Year when values typically rise. Despite the limited supply, values fell by £502 (5.2%) compared to November and £36 (0.3%) compared to December 2013.
In December, nearly new values broke the previous record average value to reach £23,075, the first time the sector has broken the £23,000 mark. The figure was also £1,398 (6.4%) above November’s vales, while CAP Clean performance improved by 2 points to 101.16%.

The first trading days of the year have been encouraging for the motor trade industry. Henstock said: "The early days of trading in 2015 have been exceptionally busy and with the new plate on March 1st only weeks away, we are entering one of busiest periods for the motor trade. Sourcing and securing those best quality retail cars will be critical for professional buyers in the weeks ahead and buying the right stock at a good price and in a timely fashion is crucial."