Fleet News

Ex-fleet cars boost wholesale market in June as retail car market softens

Manheim saw the average selling price for cars sold in its auctions rise by 9.4% in June to £5,918.

Wholesale prices for ex-fleet cars grew by 14.1% which saw prices average £10,580. The ex-fleet cars sold by Manheim in June had the lowest average mileage the company has recorded in its auctions, with an average odometer reading of just 39,544.

Motors.co.uk, also a Cox Automotive brand, saw the average retail selling price fall slightly by 1.7% in June, following the strong growth seen in the previous month. The average price of a car sold on Motors.co.uk was £12,465, with lower month-on-month prices recorded for luxury (down 0.6%), prestige (down 7.8%) and volume brands (down 4.8%).

The softening of the retail market in June may well have been attributable to the EU referendum and the uncertainty that it created in the market, both in the run-up to the vote and immediately after the result was announced.

The overall wholesale market was more bullish in June, with average selling prices rising month-on-month for luxury (up 20.1%), prestige (up 14.6%) and volume (up 2.3%) marques. Younger, lower mileage ex-fleet stock was in higher demand than part-exchange dealer stock, for which average selling prices fell slightly by 2.5%.

Demand in Manheim’s auctions remained strong for both diesel and petrol cars, with the average selling price for diesels up 10.9% compared to May and the same figure for petrol cars rising by 4.0%. In the retail market, data from Motors.co.uk showed a slight softening for all fuel types, including hybrid and electric cars, which perhaps reflected contracting consumer confidence in the run up to the EU referendum.

While consumer demand for open-top cars did not appear to increase in June, dealers buying from Manheim seem to have had a sunnier disposition, with average selling prices for cabriolets, convertibles and roadsters all showing double digit growth compared to May.

Click here for remarketing best practice and procurement insight

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee