Auction4Cars, the UK’s fee-free car auction website, believes CAP needs to reduce its valuations further to reflect continued falls in used car values.
For the second month in succession, figures from Auction4Cars show average used car values falling again to £2,754 in May (equivalent to an eight per cent drop since January).
Whilst Auction4Cars may have recorded its highest number of weekly sales since it was launched last month (450), the website still believes that CAP, the influential provider of residual vehicle data, needs to review its valuations further, with a fall of 10 per cent needed to bring it in line with auction prices (rather than the 4 per cent published in June’s Black Book).
Says Neil Prescott, Group Disposal Manager at Motorpoint: “Whilst there will always be an element of lag with CAP, prices are still as much as 10 per cent adrift, and we believe this really needs to be addressed at the earliest opportunity. This isn’t in anyway a criticism of CAP; more a frustration with the obsession with the ‘Black Book’ and the effect this is having on the marketplace.”