9:01 am, October 9, 2013
THE average values of part-exchange vehicles increased by 6.1 per cent to £2,790 in September, confirming a strong market for used wholesale vehicles.
According to Manheim’s monthly Market Analysis report, the rise in price of dealer stock is reflective of a fall in average mileage of 489 down to 76,851.
However, when comparing values with last year’s figures, the average selling price was 3.2 per cent lower than in September 2012, which can be attributed to a rise in the average age of the vehicles at auction by four months and an increase in the average vehicle mileage of 3,414.
Despite the rise in age and mileage, the average days in stock at auction has remained the same year-on-year, confirming that vehicles are still sought after.
The average selling price of vehicles rose for eight of the ten segments, especially for coupe models, which saw average values increase by £725 to £5,327. This is reflective of a fall in the average age by three months, and a drop in the average mileage of 3,698.
September also saw average values rise for the small hatchback and medium family segments. Values in the medium family segment rose by £207, to £2,807, making up over half of all vehicles sold during September. Meanwhile, the average selling price of the small hatchback segment rose by £89 to £2,009.
A decrease in values occurred in the compact executive segment, with values decreasing by £148 to £3,933.
Valuation services manager at Manheim Auctions, Daren Wiseman, said: ‘Analysing statistics is more of an art form than a science, but these figures clearly show a jump in prices for dealer part-exchanges. However, with SMMT figures showing that over 400,000 new vehicles have been registered during September and an influx of vehicles reaching auction, the average selling price rise goes against the usual laws of supply and demand.
‘The reality is that more dealers will be keeping the better stock to sell themselves, whilst the good quality stock coming to auction is making better money, thus pushing up the overall value. There is therefore a need to be realistic in the coming months, as this increased supply will eventually soften values.’
