While the average values of de-fleeted vehicles were slightly dented in July, the overall outlook for the sector remains strong, according to Manheim’s latest monthly Market Analysis.
July saw the average fleet car at auction fetch £7,273, a fall of £103 on the previous month. The year-on-year picture however, is more positive, with prices increasing by 4% (£282) from £6,991 in July 2013 to £7,273 in July 2014.
The slight fall in values in July can be attributed to the particular fleet mix seen in auction halls during the month. This period saw auctions comprising of marginally older cars (50 to 52 months) with higher average mileages (from 58,763 to 60,011) compared with the previous month.
Daren Wiseman, valuation services manager at Manheim Auctions, said: “As is the case during this part of the year, values remain largely consistent with a marginal decrease reflecting stock profile. The figures we are seeing for July are representative of a stable period, with the age and mileage of the car reflected in the values that they are fetching at the auction houses.”
Wiseman continued: “Looking to the coming months, we expect to see higher volumes of de-fleeted vehicles post plate change plus more buyers looking to find a vehicle during this buoyant period. With figures showing continued economic recovery post-recession, alongside consumer confidence gains, we could expect to see another record plate change to rival the spring results come September.”
Eight of the ten categories monitored saw a decrease in value for July compared with June. Only MPV and Supermini categories experienced an increase in price compared to the previous month. These categories, as well as 4x4 vehicles, had lower mileage in July compared with June, further confirming the correlation between price and mileage for this month.