The latest figures released by global remarketing organisation Manheim show a downturn in value for the fleet sector during September 2014, continuing the month-on-month decrease in defleet value that has beset the sector in 2014.
At £7,135, the average selling price for a defleet vehicle in September 2014 is £125 (or 1.7%) lower than comparable figures taken from August 2014.
The figures also reveal a slight increase in both average mileage and age of stock on a month-on-month basis. Average mileage saw an increase from 60,147 to 60,564 (a raise of 417 miles) whilst the average age of defleet vehicles in stock was up by two months.
Looking at the figures on a year-on-year basis, they reveal a decline of £194 in fleet sector values from September 2013 to the equivalent month in 2014. Conversely, there was an increase in both average age, by four months, and average mileage, by 4,041 miles, for September’s fleet sector stock.
Valuation services manager at Manheim, Daren Wiseman, said: “While we are seeing a small but consistent month-on-month fall in fleet sector value, this is largely typical during the usually quieter summer months. Average selling prices have remained broadly consistent from 2013 to 2014, despite a corresponding increase in both age and mileage.
“September saw another plate-change which should be a cue for the market to practice caution. The flood of defleet stock into the marketplace over the past three years, coupled with the anticipated interest rate rise and the influx of great quality part-ex stock that typically becomes available around plate-change, means that vendors will need to ensure their expectations are in line with current market conditions.”
He added: “Using this year’s trends as a starting point, Manheim would expect a strong autumn for the defleet sector. However, the overall increase in volumes of nearly new stock into the marketplace will have an impact on values. As such, these lower spec, high mileage ex fleet vehicles should be priced accordingly in order to realise the quickest return.”
Taking a closer look at Manheim’s figures, four out of the ten segments analysed saw an increase in average selling price, with the supermini recording the largest leap in month-on-month value; from £3,992 to £4,451. Year-on-year, the executive models performed over £500 better in September 2014 than in the comparable month of 2013, recording an average selling price of £13,508.
Wiseman concluded: “These figures should be reassuring for dealers. Autumn is always a busy time for the defleet sector and this year looks to be no different. Going forward, I’d suggest that dealers continue to practice caution.”