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RemarketingMarket stalls as rising volumes outstrip demandBy Gareth RobertsHeadline figures may well be different, but the under­lying trend suggests the used car market is stalling in response to rising volumes.Playing their part are so-called "sticky cars", vehicles in a poor condition that are perceived to be over-valued and as a result are overlooked."This is causing additional re-entries back into a marketplace that is already experiencing rising volumes and no better than adequate demand," explained BCA's communications director Tony Gannon. "The most obvious effect of this is that conversion rates have fallen sharply and are now some 10 points lower than they were in the first days of September."Market performance is being increasingly polarised into good and poor condition cars, and rising volumes from fleet and lease sources have thrown this into sharp relief over recent weeks.As a result, BCA's figures show fleet values falling back after two consecutive monthly improvements, dropping by 3.5% (£270) compared to September, while CAP performance fell by nearly three points to 96.6% and year-on-year values are adrift by £132 or 1.8%.Gannon said: "It is worthy of note that average values for fleet and lease stock in 2011 have declined for seven out of the ten months - further proof, if it were needed, that fleet cars are depreci­ating assets."It was a similar story at Manheim Remar­keting, where it saw average wholesale values for the fleet sector fall by 3.5% (£215). Managing director Mike Pilkington said: "Values have had to settle to more realistic levels and vehicles requiring an element of refurbish­ment to bring them up to retail standard are becoming less desirable."He continued: "The outlook remains in the balance with the supply and demand equation undoubtedly entering a crucial point in the year."Average values in the fleet and lease LCV sector improved again to £5,111, in October, reaching the highest point since the spring months of 2010. The October 2011 average is the third highest on record and year-on-year values are ahead by £229 (4.7%), while fleet vans averaged 103.6% of CAP during the month.Duncan Ward, BCA's general manager for commercial vehicles, said: "The continuing gap between supply and demand is keeping values firm. However, we are still seeing far too many vehicles entering the remarketing chain with high levels of damage which reduces their desirability and value to used buyers."He continued: "While everyone accepts a van is a working tool, we see examples of basic negligence every day that have a real financial impact for vehicle owners. As vans are often Stock issues keep van values high in October"Conversion rates are now some 10 points lower than they were in the first days of September"Tony Gannon, BCA