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.”
 

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