05 Dec November De-Fleet Trends
New data from G3 Remarketing 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 is 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.
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.
Fleet and lease vehicles values have dropped in November due to the increase in volumes and reduction in appetite. Average fleet prices are around £8,545, down £201 month on month. 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.
Matt Dale, Director of G3 Remarketing commented: “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 10-15% behind CAP values on most variants. Higher mileage versions look better value and remain popular to a degree, but are very much condition critical.”
Figure 1: Refurbishment spend and ROI – November 2013
|Make and Model||Average Refurbishment Spend||Average ROI in Monetary Terms After Refurbishment Costs||% Improvement Vs Cap Clean|