Prices of de-fleeted cars at auction strengthened during June, according to the latest Manheim Market Analysis.
After a softer May, June’s figures show that the market is on the rise. The average selling price for de-fleeted vehicles has increased by £412 (from £6,964 to £7,376) between May and June this year.
The rise in value could be partly attributed to a lower mileage of 58,763, falling by an average of more than 1,000 miles month-on-month and the predicted bounce-back after the seasonal decline in May due to high stock levels after the registration plate change.
However, the figures still show a steady increase in value over the same period last year, rising by an average of £353 per car.
The age of ex-fleet vehicles has gone down by an average of five months in June compared to May, however this is in line with figures from last year’s data, suggesting a realignment in the market.
Although vehicle values are experiencing the usual early summer softening overall, the average selling price for de-fleeted stock for May 2014 was actually £126, or 1.8%, higher in comparison with the same period in 2013. This is despite an increase in both average age, by three months, and average mileage, by 778 miles.
Daren Wiseman, valuation services manager at Manheim Auctions, said: “The latest figures from the SMMT show 28 consecutive months of growth in new car registrations and the highest number of new registrations since 2004.
“With this record month for new registrations, we expect to see more de-fleeted vehicles in the auction centres; however, with these strong market results, we also expect to see a stable increase over coming months in the value of these vehicles. The results from June show that the strengthening in values has already begun.”
Looking at the Manheim Market Analysis figures in more detail, the average selling price for eight of the ten segments analysed rose between May and June. This was most notable for 4x4 models, which rose in price by more than 10% from £12,391 to £13,685.
The average age for 4x4s fell by seven months while the average mileage saw a drop of 976 miles. The other vehicles with a notable rise in value in June were the coupe, large family and executive type vehicles.
Both MPVs and Supermini models saw a decrease in average selling price from May to June, although both look to be coming back into line with seasonal norms from the same time last year.
Wiseman concluded: “This month’s figures are a good indication of the market picking up pace.
“We would have expected to see a slightly more sustained period of price decline following the record plate change month, but results show that the values have begun to stabilise quicker than expected, which is great news for anyone looking to de-fleet during the latter part of 2014.”