Used car prices up as sold volumes fall in July
Sales from physical and online car auctions by Manheim fell 7.1% in July compared to June, although year on year sales were up 8.3% month despite part-exchange vehicle sales dropping 6.9% month on month.
The average selling price for cars was up 3.4% from the previous month at £6,319 (a 12.6% year on year increase) thanks to lower volumes, the company said, signalling a shift to higher value cars sold at auction. In addition, the average mileage of vehicles sold in July was 6.4% lower compared to July 2016 (from 64,974 to 59,392).
The company continued that the trend was mirrored in ex-fleet sales, while volumes were down 7.5% month on month the average sold price in July (£10,023) was 3.4% higher than June, and 2.1% higher than the same period last year.
Trade-to-trade online auction platform, Dealer Auction, also saw average selling prices rise by 17% from the same month last year, to £4,338. The business said it saw significant growth in the number of vehicles sold by franchise dealers on its platform, with a year-on-year increase of 11.5% on units sold.
Daren Wiseman, Head of Valuations at Cox Automotive UK, said: “We saw 4×4 vehicles beginning to attract the attention of buyers, due to the combination of an earlier than usual seasonal buying pattern around 4×4 and utility vehicles, and a shortage of vehicles in general across other sectors.”
“We also must air a note of caution for the upcoming months. The September plate change and the inevitable influx of part exchange and fleet returns it will bring, will increase volume into the market but could also once again put some light pressure on values over the next 6-8 weeks. Those who are currently experiencing a strong wholesale market and auction performance should plan for the likely impact of extra volume on sales prices, and recognise the need for realistic reserve setting when it undoubtedly arrives.”
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