Fleet values drop in November

Average fleet prices dropped £201 month on month in November to £8,545, according to G3 Remarketing.

Finance vehicles have also declined in value, with average prices at £6,338 and a decrease of £207 month on month.

Mileage has seen a slight increase in November, with average mileages now around 58,600 with average ages of 37.8 months.

The latest data also shows that 4x4s are now starting to realise the seasonal trends and prices are on the increase, with an expected leap in value in early January 2014. Overall performance within this sector has been recorded at 100.4% CAP Clean.

The smaller car sector remains buoyant with the exclusion of nearly new vehicles (0-9 months old).  This segment is hovering around the 99% of CAP Clean with smaller, diesel examples exceeding 100% on a regular basis.

Volumes have increased this month by around 3%, as contract hire stock finds its path through to the auction. Volumes are expected to drop in December, but with overall conversion rates reducing, this will have a detrimental impact on values until early January. A slight recovery is expected, but as there appears to be more volume in the marketplace, the usual bounce back maybe a little more subdued.

Refurbishment spend and ROI - November 2013

Matt Dale, director of G3 Remarketing said: “Segment value levels have dropped as the market continues to cool. In November, the best performing markets appear to centre below the £5,000 mark, as dealers continue to try and appeal to cost conscious motorists, especially now we are in the run-up to Christmas.

“There continues to be some significant difficulties relating to nearly new models, such as the Fiesta and Focus, with volume outstripping demand. In addition, C3 Picasso models are performing some 10% behind CAP values on most variants. Higher mileage versions look better value and remain popular to a degree, but are very much condition critical.”