Fleet values down for fourth consecutive month
In its latest Market Analysis for Cars, the company reports that average wholesale used car values in the Fleet sector fell by 3.6% (£219) to £5,925 in July following a fall of 7.0% in June. Values are now 12.2% (£824) lower than in March this year.
Overall values were up by 0.6% (£39) to £7,017 while Dealer part exchange vehicles fell by 0.5% (£10) to £2,153 and Manufacturer stock rose by 5.1% (£648) to £13,312.
Overall average used car values are now 2.6% (£186) below the same period last year. Average age is up by two months compared with July 2009 at 51 months and average mileage is higher by 1,740 miles at 50,983, Although the overall position in 2010 compared with 2009 may suggest that all sectors have performed similarly, the Fleet sector is actually down by 9.3% (£606) over the period, while Dealer is up 2.9% (£61) and Manufacturer is up by 2.7% (£347).
In line with a more difficult trading environment, July saw an increased focus on buyers purchasing clean, low-mileage vehicles with full service history. Manheim Remarketing has also reported increased dealer demand for two to four-year-old vehicles. In contrast, vehicles requiring reconditioning work, mechanical or paint repair are seen as less desirable and will only sell if reserve values are set realistically.
Mike Pilkington, managing director, Manheim Remarketing, said: 'Considering that the difficult trading conditions experienced in June continued in July, the fall in Fleet values wasn't really a surprise, even if the slight rise in overall values was unexpected.
'The levels of economic confidence and consumer demand continue to cause concern as we enter what is traditionally one of the quietest periods of the year in the auction halls. As the summer ends, we will then hit the public spending review announcements, which are also likely to affect consumer confidence. So unless consumer demand picks up in the short term or there is a reduction in vehicle supply then the pressure on prices will remain.'