FALL: May again saw a drop, report Manheim
Prices of de-fleeted cars at auction continued to fall in May but values are stabilising, Manheim’s latest Market Analysis has claimed.
After an 8.5% decrease in the value of ex-lease and contract hire cars from March to April 2014, prices fell just £162 (2.3%) during May to £6,964.
The average age of the vehicles has remained consistent at 55months, while average mileage fell by 2,247miles month-on-month.
Although vehicle values are experiencing the usual early summer softening, the average selling price for de-fleeted stock for May 2014 was £126.
This is 1.8% higher than the same period in 2013, despite an increase in both average age, by three months, and average mileage, by 778miles.
Daren Wiseman, Valuation Services Manager at Manheim Auctions, said: “The latest figures from the SMMT show 27 consecutive months of growth in new car registrations.
“This has been supported by a 20.4% increase in business car sales during the first five months of 2014, compared with the same period in the previous year.
“As a result, we continue to see a steady flow of de-fleeted stock into the auctions.
“However, with so much quality stock floating around, and in line with the usual seasonal variations, there has been an inevitable softening of values in the wholesale sector.
“We continue to experience a buyer’s market, in which vendors must consider how to present their product in the best light.
“Expectations are that the new market, and hence volumes in the used sector, will now start to stabilise; which will be positive news for organisations looking to de-fleet in the latter part of 2014.”