Manheim Remarketing cautions over need for realistic pricing
With conversion rates in the month significantly lower, some expected the fall in values for fleet stock to more than the 0.6% (£39) drop to £6,609, which followed a fall of 1.5% in April, but Manheim Remarketing's managing director Mike Pilkington said fleets need to be aware that prices may need further readjustment.
He said: 'The decrease in fleet values was much less than expected given the significant fall in conversion rates during May. However, the reduction in demand will inevitably result in lower prices and vendors need to react to the realities of the present marketplace.'
But Manheim Remarketing added that the market's continuing stronger position in 2010 over 2009 is still evident, with Fleet values ahead of May 2009 by 3.1%.
Overall values actually increased by 0.6% (£43) to £7,324, with dealer and manufacturer stock both up, although this was due in part to a richer model mix. The company added that that this is still nearly 9% ahead of the same period last year. Average age is up by four months compared to May 2009 at 50 months and average mileage is higher by 3,015 miles at 49,777 miles, reflecting extended use during the recession.