Fleet News

Auction prices tumble

Larger, less fuel-efficient used cars dropped in value by up to 8% in a single month over the summer.

EurotaxGlass’s said vehicles such as large executive saloons and larger 4x4s are falling in value at above-average rates as more UK motorists focus on smaller vehicles to save on running costs.

Adrian Rushmore, EurotaxGlass’s managing editor, said: “The current economic climate has accelerated a trend of downsizing in all but the smallest used car segments.

“Dealers have reported that significant numbers of customers feel coerced into a change of car because their current mode of transport had become a financial drain on their incomes.”

Auction house Manheim reported that the average vehicle price in the fleet sector fell by £444, or 6%, to £5,121 during July, with a one month rise in average age to 44 months and an average mileage increase of 1,710 miles
to 53,533.

MPVs were hit hard, with the average selling price falling £1,010 from June, a 16.2% tumble.

In cash terms, executive cars fell £1,124 or 12%.

Dealers saw the greatest fall in the off-road segment, where values fell £545 or 14%.

However, small coupé and large coupé models saw their average selling prices rise by 2.6% and 1.3% respectively.

Mike Pilkington, Manheim’s managing director, said: “The tougher market for wholesale used cars looks set to continue for some time.

“However, interest in the lower-priced ‘budget’ vehicles at auction remains high, confirming that there continues to be demand if the price is right.”

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee