Fleet News

Upper-medium sector on the up

PRICES of upper-medium cars have improved more than those of any other vehicle sector in the last month.

The much-maligned sector saw an average price rise of 1.5% for three-year/60,000-mile examples during September, with star performers the Peugeot 406 saloon, which has seen an average rise of 5% for both petrol and diesel, and the Nissan Primera, which has seen rises around 6%.

CAP Black Book’s October editorial also notes: ‘The Peugeot 407 has moved in the opposite direction, with a 2% fall for both petrol and diesel variants. Vauxhall Vectra has seen an increase in values for the second month running, with an average rise of 2% for petrol while diesel remains level, with the exception of some SRI models.’

Generally, all sectors are seeing strengthening prices, with higher showroom traffic and increased sales volumes.

It added: ‘Confidence and expectations for performance in the coming weeks are also stronger than since the spring.

‘In the leasing and contract hire sector, performance is similarly showing improvements compared with the summer. For example, conversion rates have been standing at 88.6% – the highest since March this year.’

However, CAP warned that the likely increased number of vehicle returns from the leasing and daily rental sectors over the coming weeks could have an effect on prices, although it does not believe the extra cars pose an immediate threat to stability, due to the continuing appetite for used stock.

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