The latest Manheim market analysis reports that average used car values in the fleet sector have jumped by 9.8% year-on-year, despite age having increased by an average of two months. The percentage of new price has also risen year-on-year, increasing by 2%, to 35%. Overall, however, the volume of all cars available – across fleet, dealer part-exchange and retail – has fallen, while value has risen by 13% year-on-year.
Looking at the figures in more detail, average used car values in the fleet sector have risen by 1% to £6,699 in June, compared with £6,634 in May. This is despite a very slight increase of 52 miles in average mileage, to 59,739 miles. The average selling price rose for seven of ten vehicle segments considered, most notably for Mini MPV vehicles, where a fall of one month in average age and 3,303 miles in average mileage has led to a 10.1% rise to £5,042. Conversely, the largest fall in values was recorded in the Compact Executive segment, where the average value fell by 4.4% to £8,337, reflective of an increase of three months in average age and 1,511 average miles.
Daren Wiseman, valuation services manager at Manheim Auctions, commented: “While average values in the sector have risen, the volume of vehicles available for sale has fallen. We are now facing the inevitable consequences of the economic climate three or four years ago when market conditions were at their toughest and organisations made the strategic decision to retain their fleets for longer. So, we are perhaps unlikely to see stock levels recover this side of Christmas. Combine this shortfall in stock with a series of events which preoccupy the nation’s attention – Jubilee, Euros and Olympics – and forecasting retail demand becomes very difficult.”