AUCTIONS: Market strength continues
Despite falling in July, by an average of £377 (5.1%), compared to June’s wholesale prices, the value of ex-lease and contract hire cars is still £371 higher (5.6%) now than 12months ago.
The latest figures from the Manheim Market Analysis indicates the decrease in value at auction in July is attributable to an increase in both the average age and mileage of the de-fleeted vehicles.
Clearly, with the average age jumping by two months and the average mileage increasing by 710, to 50months and 58,078miles respectively, wholesale market prices were affected.
Daren Wiseman, Valuation Services Manager at Manheim Auctions, said: “It’s significant to note that auction prices in July reacted to an increase in age and mileage of vehicles, by falling back from £7,368 to £6,991.
“This shows that although there is generally still a shortage of wholesale stock coming to auction, the market is perhaps more focused on selling than buying at the moment.”
Detailed analysis shows the average selling price of de-fleet vehicles fell for nine of the ten segments from June to July, most notably for executive models, which declined by £1,053.
This is reflective of an increase in average age by three months and 5,481 in mileage.
In contrast, the one increase in average values was seen in the large family models, which rose by £152 from July.
Year-on-year, six of the ten segments saw an increase in value – including the executive sector, which, despite the July blip, has seen values rise by £842 throughout the year.
Mr Wiseman added: “Although the market for de-fleet vehicles is facing the inevitable effects of the summer, things have not been as gloomy as first thought.
“It will be interesting to see how the latter portion of 2013 compares with the first seven-months, as 2013 has so far been fairly positive for fleet managers looking to dispose of stock, with the percentage of new price retained remaining consistent throughout the year so far.”
Manheim are the world’s largest automotive services company, handling nearly ten million used vehicles worldwide and facilitating transactions representing more than $50billion in value.