Fleet News

Market for de-fleet vehicles remains strong

The average price of a de-fleeted car at auction increased by £178 during 2013, according to data from Manheim’s monthly Market Analysis

This reflects a fall in the average mileage of 614 to 59,962 and the average age of vehicles remaining the same at 52 months. 

When looking at values across the whole of 2013, Manheim’s Market Analysis shows that overall wholesale prices of ex-fleet cars have increased.

At £6,795, the average selling price was 2.7% higher in December 2013 when compared with December 2012.

Looking at the performance of vehicle segments in more detail, values increased for seven of the 10 vehicle segments year-on-year, most notably for MPV models, which saw prices increase by £1,620, from £7,022 in December 2012 to £8,642 in December 2013. This is reflective of average age decreasing from 57 to 48 months and a significant drop in average mileage from 72,829 to 59,643. 

The most notable fall in year-on-year values was seen in the coupe sector, with prices falling by £2,046, to £8,887. This is reflective of an increase of five months in average age and 1,301 miles compared to December 2012. 

Daren Wiseman, valuation services manager at Manheim, said: “The past 12 months have been fairly good for leasing companies looking to gain best value for their de-fleet stock.

"It’s largely been a seller’s market and residual values have been strong.

"While all the indicators point to another good year for vendors in 2014, the leasing companies that have an in-depth knowledge of the market, along with a flexible supply chain, will continue to achieve the best values for vehicles.

“Fleet businesses are no longer able to simply put cars onto a low loader and keep their fingers crossed that values will remain high.

"Sophisticated businesses are increasingly analysing their fleet profiles and developing appropriate remarketing strategies.

"2014 will see savvy leasing companies focus on this more detailed approach to the market.

“This will include the use of a range of remarketing tools in order to achieve the best residual values, which is why Manheim will continue to offer a number of channels through which stock can be purchased. For those that get the remarketing of their stock correct, 2014 should be another successful year.”

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