The used car market remains volatile. Though demand for low-mileage vehicles, between two and five years old, remains high, older, executive and ex-fleet models are proving less buoyant. Retail demand continues to fall and next month’s arrival of the 58 plate is unlikely to slow the decline.The ex-fleet market is a concern. Fleet managers are overvaluing their stock and subsequently many of these vehicles, often overpriced and out of condition are failing to shift at the auction hall. An influx of executive models such as 3/5/7 Series and A4/A6 is also likely to cause problems. With large numbers expected to be defleeted towards the end of the year, the fall in values is expected to hit these models the hardest.All this means providing accurate vehicle valuations is proving a harder science than for many years. Martin Keighley comments: “Accurate vehicle valuation hasn’t been so difficult for some 15-20 years. However today’s market should be looked at as part of a normal cycle rather than an apocalypse.”Valuations have dropped across the board this month. Hardest hit are the ‘gas-guzzlers’, including some of the bigger diesels. Vehicles in the proposed higher vehicle excise duty are also affected with most seeing a decline in value of on average around five percent.Despite the tough market conditions, many dealers continue to trade profitably and though things are likely to get worse before improving, positive shoots of recovery, such as relatively low interest rates, are visible. The situation could be eased by the government though, admits Martin.“Doubts remain over the retrospective changes to vehicle excise duty which are adding to the nationwide lack of confidence. Clarification or an alternative plan may help sweep away some uncertainty.”