The latest Pulse Report shows that values averaged £9,588 in December, a fall of £190 (1.9%) compared to November’s figure of £9,778.

Retained value against original MRP (Manufacturers Retail Price) was down slightly at 40.21%, with age and mileage broadly static. Compared to December 2014, average fleet & lease values were up by £462 (5.0%), with both performance against CAP Clean and retained value up on 2014.

The latest figures follow the slight drop in November, with values averaging £9,778, a fall of £70 (0.7%) compared to October, but still the second highest average value recorded for fleet & lease stock since Pulse began reporting.

Average used car values also saw a slight fall last month to £8,046 following the record level achieved in November. This was down by 0.9%, with performance against CAP Clean improving to 96.4%. Year-on-year, average values were up by £39 (0.5%), with age static and mileage down by some 2,000 miles. Performance against CAP was up 0.4% compared to 2014.

BCA said that a change in market sector mix contributed to the decline in the headline value as a larger percentage of dealer Part-Exchange cars were sold in December compared to the previous month. This also resulted in average mileage and age rising over the month.

Despite the month on month fall, December’s average value was the third highest on record and remains ahead year-on- year.

Simon Henstock, BCA UK chief operating officer remarketing, commented: “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 in December, whilst dealers continue to sell part-exchange vehicles as a result of their ongoing retail activity. There is still a competitive trading environment in December as professional buyers look to source the most attractive, retail-ready stock to meet on-going customer demand, while also keeping an eye out for stock suitable for the January upturn.”

He continued: “The early days of trading in 2016 have been exceptionally busy and with the new plate on March 1st only weeks away, we are entering one of the busiest periods for the motor trade.”