Fleet News

Defleeted car values increased in March, says Manheim

Manheim’s Market Analysis report for March 2014 shows that the average selling price of de-fleet vehicles increased by £715, or 10.1%, during the month.

March witnessed the average price of de-fleet vehicles reach £7,791, which is reflective of a fall in average age of one month and a drop in the average mileage of 2,677.

When looking at the broader year-on-year figures, the average selling price was £1,076 higher than in March 2013, which can be attributed to a fall in the average age of the vehicles at auction by one month, to 51 months, and the average vehicle mileage falling from 61,515 to 58,838.

Looking at the figures in more detail, the average selling price increased for nine of the 10 sectors analysed during March 2014.

This was most noticeable with coupé models, which rose by £2,247 (or 22%). This is reflective of the fact that the sector saw average age fall from 61 months to 50 months and the average mileage fell from 57,486 to 49,071.

In addition, with warmer weather finally beginning to appear, coupe models are likely to experience the traditional seasonal increase in volumes, said the remarketing company.

While the sun might be shining in some parts of the country, the wettest winter on record has not yet been forgotten, which has resulted in a significant rise in the average selling price during March for 4x4 vehicles.

Values rose from £13,256 to £14,910, which reflects a fall in the average mileage of from 63,158 to 59,135 and average age remaining the same at 56 months.

Conversely, the only fall in values was recorded by MPV models, which fell by £195 (2.6%) in March. This is reflective of an increase in average age of three months and average mileage of 13,498, to 60 months and 76,677 miles respectively.

Daren Wiseman, valuation services manager at Manheim Auctions, said: "The headline figure of £7,791 has been strengthened in March due to an increase in market volume generated by good quality, late year, low mileage de-fleeted company cars. The seasonal influx in part-exchanges following the recent plate change has had a positive impact on the average selling price.

“However, we are predicting a significant rise in the average monthly supply of vehicles coming to auction during April.

"In fact, we have seen an increase of around 25% in the number of vehicles coming through the auction centres over the past couple of weeks.

"This increase in vehicles coming to auction could see values soften slightly as we move into the summer, although due to the continued pent-up demand for retail-ready cars I would expect selling prices to remain strong over the next couple of months at least."

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