10:43 am, January 3, 2013
THE value of part-exchanged vehicles ‘ended on a high’ in December, according to Manheim.
Figures from the firm suggest that values for trade-in vehicles rose by 1.7 per cent (or £47) against the month before – despite average mileages increasing.
Annual figures increased too, with the average price for achieved for part exchanges rising to £2,851 in December 2012 – up 22.83 per cent (or £530) against the same month last year.
The increase in values doesn’t appear to be down to a drop in part exchanges’ age or mileage, though. Average vehicle ages remained reasonably stable – between 97 to 100 months – while average mileages actually increased, up 830 miles on December 2011. Manheim instead suggests the price increase is simply down to supply and demand – as a lack of good quality stock still affected the market.
‘Our latest market analysis figures show that despite sluggish growth in other parts of the retail sector, 2012 has probably been a pretty good year for a lot of dealers,’ commented Darren Wiseman, valuation services manager at the firm.
‘While consumer confidence is still fragile, our data suggests that new car sales are robust and that dealers are achieving good prices for their part-ex vehicles. Market information from the SMMT confirms that the UK is something of a bright spot in an otherwise gloomy retail picture across Europe. Figures show that while many EU markets are in reverse, the UK market for new car sales is growing at over 5 per cent a year, and is now back to 2008 levels.
‘While this is good news, the challenge facing dealers is to ensure they continue to achieve best value for all their part-ex vehicles, not just the stars of the forecourt. The secret to success in 2013 will be even tighter control of the ‘when, where and how’ of remarketing; When is the best time to put a car into auction? And where would be the best location to sell a particular model?’
