4×4 values up and MPV values down in Manheim's long-range Market Analysis
According to the report, wholesale values of used 4x4s have increased significantly in all three market sectors (Manufacturer, Fleet and Dealer part exchanges) when compared with Q3 2007. Within the Fleet sector values were up by 24.2% (£2,296) to £11,772. In the Fleet sector average age of 4x4s was 50 months compared with 44 months, while average mileage was 56,000 miles compared with 46,000 miles in Q3 2007.
Meanwhile over the same period values of Mini-MPVs and MPVs have declined in all three market sectors. These were the only three vehicle segments to show either an increase or decrease in values across the board, in all three market sectors.
The long-range report also shows that the average age of vehicles in the Fleet sector has increased by six months to 48 months since Q2 2009 as the impact of contract extensions has begun to be felt. Overall average values were up by just 2.7% (£183) to £6,853 when compared with Q3 2007 but a massive 31.7% (£1,648) up on Q4 2008, the most difficult quarter for many years.
Average values of Fleet sector Mini-MPV values were down 5.1% (£268) to £4,956 while average age and mileages were significantly higher, which would account for some of the fall. Meanwhile stability was reported for MPV values in the Fleet sector although average age and mileages were also significantly higher.
Looking ahead to market conditions for the coming months, Mike Pilkington, managing director, Manheim Remarketing, said: 'The past three years in the wholesale used car market have been extraordinary. Wholesale values have suffered the worst decline in living memory, staged a dramatic recovery and then returned to a familiar seasonality once more. Next year we expect continued stability and, while the VAT increase is unlikely to have any material impact on values, the lack of good quality, older used stock for franchised dealers due to lack of new car registrations in 2008/9 will help support prices. We expect demand from buyers at auction to remain strong in Q1 in line with seasonal norms.'