Figures released by Manheim, the world’s largest vehicle remarketing organisation, reveal another strong month for the dealer sector as a whole, with firm favourites such as the small and medium hatchbacks also recording increased values.
The biggest leap in value was seen in the 4×4 sector, with the average selling price increasing throughout the month by more than £500 (or eight per cent) to £7,792. Meanwhile, the total average selling price of part-ex vehicles in November stood at £3,395 – just £5 higher than October and maintaining this year’s trend of marginal monthly increases in value.
Daren Wiseman, valuation services manager at Manheim, commented: ‘Despite a warmer than average November, these figures reveal the demand for 4x4s is increasing as we move towards colder weather. I’d expect this to hold steady throughout winter – and dealers should try and match their stock accordingly.’
Alongside a growth in average selling price, November’s stock also saw a slight increase in average age (from 99 to 100 months) and average mileage (from 75,405 to 76,649) in part-exchange vehicles at auction.
Wiseman said: ‘The market as a whole is seeing a shift towards condition, rather than age and mileage, being chief value influencer – and this month’s figures attest to that. There’s plenty of life left in an older unit, assuming it’s been properly looked after!
‘Looking forward to 2015, January is typically a very busy month for dealers as buyers look to start the New Year with a new car. To best handle this, dealers should ensure their forecourt stock matches buyer demand. Brightly coloured convertibles might be ideal for summer driving, but sales for such cars are likely to stall during the colder quarter of the year.
‘This year has been particularly impressive for dealers, with 12 consecutive months of value appreciation, which bodes well for 2015. I’d expect values to fall in line more with the seasonal average as the market continues to settle, but that doesn’t mean dealers can’t enjoy another very fruitful year!’