Bad news for used prices

Time 13 years ago

More bad news for used pricesUSED car prices fell by 3.1 per cent in December, reports Manheim – 14.5 per cent lower than 2007.

In monetary terms, this means the average selling price was just under £1000 lower this year than last year.

The results eroded gains seen in some sectors in November. The fleet sector, for example, fell by 3.1 per cent. The month before, it actually rose by 3.4 per cent.

Dealer sector cars suffered an increased loss, dropping to just under 5 per cent. The manufacturer sector, however, saw a reduced fall – to 5 per cent, down from 6.3 per cent.

There were small gains in limited areas – supermini and compact executive cars in the fleet sector were up 1 per cent and 3.2 per cent respectively. Large coupes in the dealer sector also rocketed by 19.2 per cent.

But these gains were easily offset by falls elsewhere. Dealer sector coupes fell by 16.8 per cent, and off-roaders plunged 13.9 per cent. Large family fleet cars also dropped 6.5 per cent.

Mike Pilkington, MD, Manheim Auctions & Remarketing said: ‘Although average wholesale values continued to fall in December, there were several examples of increases – which suggests that, if a vehicle is in demand and the price is right, it will sell.

‘As far as 2009 is concerned, the year has started well, with full auction halls, strong prices and high conversion rates.’

So that’s good news for the coming months? Pilkington urges caution for those speaking of the green shoots of recovery. ‘This quarter is traditionally strong, so we must still be cautious in assessing any long-term recovery in prices.’

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