SEPTEMBER saw both fleet and dealer part exchange values increase, says Manheim Remarketing.
According to Manheim Remarketing’s latest market analysis for cars report, average wholesale used car values in the fleet sector increased by 2.9 per cent (£169) to £5,960 in September – the first rise for four months.
Dealer part exchange prices rose by 1.8 per cent to £2,219, while overall average values remained ‘fairly stable’ with a drop of just 0.7 per cent (£47) to £6,736.
The report also found that average vehicle age has remained static, but mileage has increased by 454 miles to an average 52,785 miles, and the biggest increases in values for the fleet market were small hatchbacks, large family vehicles and MPVs.
Dealer part exchange prices strengthened during September, Manheim found. Small Hatchbacks were up by 4.8 per cent (£86) to £1,868, MPVs up by 13.4 per cent (£326) and 4x4s up by 9.6 per cent (£449) to £5,121. Meanwhile manufacturer stock values were down by 4.7 per cent (£590) to £12,057 following a fall of 5 per cent (£665) in August.
Overall, the report concluded that the market has suffered a significant drop in overall average used car values since September 2009, with prices now down by 9.4 per cent (£700). The sharpest decline is in the manufacturer sector, with values down by 10.5 per cent (£1,421). The fleet sector is down by 9.3 per cent (£615) and dealer part exchanges are down by 8.2 per cent (£198) compared with this time twelve months ago.
Managing director of Manheim Remarketing Mike Pilkington, said: ‘September has been a relatively strong month in terms of both price performance and conversion rates.
‘The increase in fleet values suggests the return of the traditional autumn seasonal uplift and improved buyer confidence while the increase in dealer part exchanges confirms the strength of demand in the budget motoring sector.
‘In the short term we do not expect to see any unreasonable pressure on values or conversion rates and with no huge influx of vehicles anticipated during the next few weeks the immediate future looks set to remain stable.’
By James Batchelor