Manheim Remarketing’s latest Market Analysis for Cars reports that overall average wholesale used car values fell by 1.1% (£76) to £7,019 in April following three consecutive months of increases. The Fleet sector experienced a decrease in average values of 3.0% (£194) to £6,250 with Dealer part exchanges also down by 5.7% (£147) to £2,437. Meanwhile Manufacturer stock values rose by 2.0% (£243) to £12,377. When compared with April 2010, with average age up by three months to 53 months and mileage up by 3,064 miles to 53,853 miles, average wholesale used car values are 3.6% (£262) lower.
Notable examples of decreases in average values in April in the Fleet sector include Large Family down 2.7% (£135) to £4,912, Executive down 9.3% (£977) to £9,524 and 4x4s down 2.9% (£378) to £12,623. Dealer part exchange Small Hatchbacks fell 5.8% (£122) to £1,996, Medium Family fell 6.1% (£147) to £2,272, Compact Executive fell 7.3% (£276) to £3,479 and 4x4s fell 8.4% (£489) to £5,295.
Examples of increases in values for the Fleet sector in April include Superminis up 8.5% (£318) to £4,074 and MPVs up 7.2% (£506) to £7,488, both due to a significant reduction in average age. Dealer part exchange prices for Executive rose by 2.8% (£103) to £3,789 and Coupe by 2.7% (£108) to £4,121. Examples of increases in Manufacturer stock values include Small Hatchbacks up 8.8% (£776) to £9,575 and Executive up 6.0% (£1,150) to £20,349.
Mike Pilkington, managing director, Manheim Remarketing said: “As predicted, values did come under pressure in April because of an increase in supply and a softening of retail demand. Increased supply came from the influx of March part exchanges and increased levels of end-of-contract and extended contract fleet and lease vehicles. This situation was anticipated and vendors who correctly assessed the market and adjusted their values and reserves accordingly attracted strong bidding. Retail demand did ease through the course of April, especially towards the end of the month during the extended holiday period. However trade and retail demand has been more positive in the past few days and the volume outlook from a disposal perspective looks more healthy as we move towards June.”