Fleet News

Used prices slow down after strong year start

USED value price rises of typical fleet cars across Europe are starting to slow down after a strong start to the year, new research suggests.

Although figures show the average three-year values for about 40 benchmark models have increased for the fourth quarter in a row compared to the same period last year, several brands are now showing a downward trend.

Used values in Austria, Hungary, Spain and Poland are still rising but in Italy, which has a weak used car market, values are dropping significantly, the study found. They are also gradually falling in Portugal, although from high levels compared to the rest of Europe, the EurotaxGlass's Fleet Index found.

A spokesman for EurotaxGlass's said: 'Six markets now show a downward trend. France (-2.2%) and Germany (-1.0%) have joined Italy, Portugal, Switzerland and the Czech Republic, which already had negative 12-month trends.

'There are signs of a slowdown in the UK market, with values dropping by 6% last quarter and a year-on-year increase of 4.5%, compared to 7.9% in the year to May 2004.'

Although average values have increased for the fourth quarter in succession compared to 12 months earlier, the index shows that average values in Europe in August 2004 were 0.1% higher than 12 months ago and 1.5% higher than in June this year.

Six markets now show a downward trend. France (-2.2%) and Germany (-1.0%) have joined Italy, Portugal, Switzerland and Czech Republic, which already had negative 12-month trends.

There are signs of a slowdown in the UK market, with values dropping by 6% last quarter and a year-on-year increase of 4.5% (compared to 7.9% in the year to May 2004). Segment analysis provided in the EurotaxGlass's Fleet Index gives segment analysis and found that in the small sector values are generally declining, although the Opel Corsa is performing well along with Renault Clio and diesel Citroen Saxo and Ibiza models.

It adds that values in the medium sector are gradually increasing for most models, although falls for the Opel Astra, Toyota Corolla and VW Golf are bringing down the petrol model average. In the large segment, new model introductions continue to drive large increases in the upper medium segment - particularly Ford Mondeo and Renault Laguna, launched in late 2000. Audi A4 and VW Passat are also performing well, the study said.

The spokesman added: 'In the executive segment most values are now declining, particularly the old style Audi A6. Only petrol BMW 5-series and Mercedes E-class models have a positive trend.'

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