Used car prices up as sold volumes fall in July, reports Cox Automotive

Time 4 years ago

COX Automotive’s wholesale and retail brands reported a steady month in July, buoyed by increases in year-on-year used car prices despite falling volumes.

The volume of vehicles sold through Manheim’s physical and online car auctions fell 7.1 per cent in July compared with June, although year-on-year sales were up by 8.3 per cent.

The month-on-month decrease was partly caused by a 6.9 per cent fall in part-exchange vehicles, said the company.

Lower volumes meant the overall average selling price for cars was up 3.4 per cent from the previous month at £6,319 (a 12.6 per cent year-on-year increase), signalling a shift to higher-value vehicles being sold at auction. Further reflecting the change in type of vehicle, the average mileage of vehicles sold throughout July was 6.4 per cent lower year on year (down from 64,974 to 59,392).

The trend was mirrored in ex-fleet sales. While volumes were down 7.5 per cent month on month, the average sold price in July (£10,023) was 3.4 per cent higher than in June, and 2.1 per cent higher than the same period last year.

Daren Wiseman

Dealer Auction, the UK’s largest trade-to-trade online auction platform, also saw average selling prices increase, rising by 17 per cent from the same month last year to £4,338. The business also saw significant growth in the number of vehicles sold by franchise dealers on its platform, with a year-on-year increase of 11.5 per cent on units sold.

In the retail market, the average advertised price of vehicles sold on throughout July remained steady and prices stayed within one per cent of those recorded in June at £13,557, up 8.7 per cent from the same period last year.

Despite announcements from the industry into the future of petrol and diesel vehicles, the introduction of new scrappage schemes and increased interest from customers in the topic, Cox reported little negative impact on values or volume of petrol and diesel vehicles sold through

PA pic by Wholesale stock funding business NextGear Capital remained static in its average cost of units funded within one per cent of previous month. The number of units funded increased by two per cent from the previous month.

Daren Wiseman, head of valuations at Cox Automotive UK, said: ‘Most sectors have remained stable throughout July.

‘We also saw 4×4 vehicles beginning to attract the attention of buyers, due to the combination of an earlier-than-usual seasonal buying pattern around 4×4 and utility vehicles, and a shortage of vehicles in general across other sectors.

‘We also must air a note of caution for the upcoming months. The September plate change and the inevitable influx of part-exchange and fleet returns it will bring will increase volume into the market but could also once again put some light pressure on values over the next six to eight weeks.

‘Those who are currently experiencing a strong wholesale market and auction performance should plan for the likely impact of extra volume on sales prices, and recognise the need for realistic reserve setting when it undoubtedly arrives.’

Picture: Lauren Hurley/PA Wire/PA Images

MORE: Cox Automotive launches open-platform Incadea DMS in UK

Get more from Car Dealer

  • Premium stories
  • Used car data
  • Magazine early access

MORE: Cox Automotive UK and Cap HPI renew relationship

MORE: Cox Automotive helps dealers get the edge with new Stock Insight tool

On What we know so far about the BMW i8 roadster

Car Dealer Magazine's avatar

Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

More stories...

Server 51