Fleet/lease values declined in November as volumes continued to rise, BCA reports.

November saw fleet/lease values fall by £241 (2.3%) to £9,995.

Last month saw fleet/lease values fall by £241 (2.3%) to £9,995 despite a fall in the average age from 39.39 months in November 2015 to 38.69. Average mileage was also down to 42,497 from 45,038 a year ago.

In contrast, the headline average value of a used car rose to a record level for the fifth month in a row, rising by £40 (0.4%) to £8,631. Year-on-year, the headline figure was up by £505, equivalent to a 6.2% increase in average values.

However Simon Henstock, BCA chief operating officer UK remarketing, said the increase was largely due to the richer mix of stock handled by BCA during the month.

He added: “Looking at the detail shows there was pressure on values across the board, as rising volumes gave greater choice to buyers, with attention focused on the best examples and high demand models.”

“While it is good news that there is plenty of demand for the best quality stock, it should not disguise that there is a two-tier market developing as volumes climb. Ready-to-retail cars continue to attract the buyer’s attention and churn quickly, but poorer condition, older and higher mileage examples need to be accurately appraised and valued in line with market expectations if they are to be sold first time.”