Used car prices at at auctions rose by nearly three per cent in July with older stock continuing to thrive, new data reveals.
The average sale price at Manheim auctions increased by 2.7 per cent month-on-month to £6,124 in July.
With younger, lower models continuing to be hard to come by, older vehicles were snapped up at auction throughout the month.
The average age of the used cars sold by Manheim rose to 102.9 months old – up 1.9 per cent from June.
As a result, the average mileage of cars sold also increased by 2.2 per cent to 69,685 miles and Cap clean values fell by 1.2 per cent at 98.9 per cent.
Additionally, first-time conversions were up 2.2 per cent month at 83.3 per cent, compared to June.
- Despite warning of ‘sensationalist headlines’, BCA reports average used car values leapt 3.6% in July and £1,000 ahead of 2020
Despite the rise, the results are down on the same period last year, when demand for vehicles was at its peak following the opening of showrooms on June 1.
Philip Nothard, strategy and insight director at Manheim’s parent company, Cox Automotive, said: ‘The race for “ready to retail” stock continues as supply remains limited, albeit reports are that consumer demand isn’t excessive.
‘This is due to typical seasonal patterns where consumers take holidays and enjoy summer downtime, whether it be a staycation or a trip abroad.
‘Summer is also a time for consumers to make home improvements, and the relaxed social distancing restrictions are allowing families to travel and spend time together again, diverting the attention away from buying cars.’
He added: ‘To navigate the current headwinds, used car dealers are having to lean on all their experience, knowledge and data.
‘A recent Cox Automotive dealer sentiment survey revealed that 81 per cent of dealers have increased the proportion of part-exchanges they retain for retail.
‘This is further impacting wholesale supply and driving competition for the stock that’s available.
‘Moreover, two-fifths expect this change to continue even when supply improves, suggesting that some dealers’ habits have changed permanently.’
The figures come as Cox Automotive reiterated its warning to dealers to prepare for further supply disruption.
The firm said the end of the furlough period coming to an end on September 30, together with ‘a widespread change in consumer spending habits, the impact of Brexit, and a wage war within the logistics sector with continue to negatively impact used vehicle supply, availability and delivery’.