Brendan Malkin
The car remarketing sector remains strong, with
overall average used car values 7% higher than they were a year
ago, according to Manheim Remarketing’s latest car analysis.
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Average values totalled £7,281 in
April compared with £6,762 a year ago, with the strongest increase
of 7% occurring in the fleet sector (see Chart 1).
The value of second hand cars
sourced from dealers has increased by 5.2%, and in the manufacturer
market by 6.7%.
It is not all good news, however,
as average wholesale values in April fell month-on-month by 2.3% to
£7,281.
Manheim MD Mike Pilkington said:
“The market toughened more considerably in April than a reduction
of just 2.3% would suggest.”
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By GlobalDataAlso, fleet values fell on average
by 1.5% to £6,648 while dealer exchange values dropped by 0.6% to
£2,245.
Car values are, however, being
retained for longer, Manheim’s figures show. For fleet cars, the
average%age of original new price in April totalled 38%, against
35% a year ago.
The equivalent for the manufacturer
market totalled 60%, against 56% in April 2009, and 16% in the
dealer sector, 2% up year-on-year.
Extension of deal terms during the
recession also meant that average age of cars sold was 50 months,
three months more than a year ago. Average mileage also rose by
3,400 miles to 50,879.
Meanwhile, van sale prices continue
their inexorable rise, although experts predict a downturn to occur
in month to come as supply increases.
Manheim’s remarketing arm reported in its monthly
Market Analysis for Vans that average wholesale used van
prices rose in April by 4.2% compared to the previous month to
reach £4,416 (see Chart 2).
According to Manheim, wholesale
used van prices have increased by as much as 43.8% since April
2009, despite average age being up by two months at 54 months and
average mileage up to 73,368, an increase of 5,442 miles.
The bigger end of the van market
has seen the most significant increases in prices, with large panel
vans greater than 3 tons increasing in value month-on-month by
11.6% to £4,727.
Manheim general manager for
commercial vehicles James Davis linked this increase to a
“wholesale supply shortage”.
Large panel vans less than 3 tons
increased in value by 4.4% £4,115, small panel vans by 4.2% to
£4,735, and buses by 3.6% to £5,744.
These rapid increases in van values
are expected to slowdown, however, as supply picks up again.
Davis said: “To date the effect of traditional seasonality has
been minimised due to under-supply but the market is becoming
tougher and there is evidence now that wholesale van de-fleet
volumes are increasing which will put pressure on values in the
weeks to come.”
