According to Manheim’s latest monthly barometer of activity, prices of de-fleeted cars at auction are still strong.
The market remained stable during August, with values falling by just £52, or 0.7%, compared to July figures. There was no change in the average age of the vehicles at auction, but average mileage fell by 463 miles.
According to Manheim’s latest Market Analysis, August’s figures demonstrated a 6.7% increase in the average value of vehicles year-on-year, with the selling price reaching £6,939. This can be attributed to a fall in the average mileage of 4,268 and a fall in the average age of two months over the year.
Daren Wiseman, valuation services manager at Manheim Auctions, said: “It’s significant to note that holiday season has played a role in the drop in average values over the month, with the number of buyers physically attending auctions during August falling compared with the early summer months.
“However, values have remained stable due to the fact that we have seen a significant increase in the number of people using Simulcast to access the auctions. This is significant as it means that, although we have seen values decrease, it has not been affected as much as they have done in the past during the summer months.”
Looking at the figures in more detail, the average selling price of de-fleet vehicles rose for four segments, most notably for supermini models, which saw average values increase by £396, to £4,222 respectively. This value increase is reflective of a fall in both the average age, by four months, and the average mileage, by 3,571.
In contrast, the most notable decrease in values occurred in the coupe segment, with values decreasing by £830, which reflects an increase in average age of five months and an increase in average mileage of 1,983.
Wiseman concluded: “The likelihood of fewer cars coming off fleet, coupled with the changing consumer demand for new vehicles, has had an impact on the supply of quality second hand cars at auction. This has meant that, although there has been a slight decrease in average values during August, the selling price at auction remains strong.”