Fleet volumes at Manheim increased by 8.2% year-on-year and 22% month-on-month in October, reports Cox Automotive.
The increased volume met strong buyer demand, and the average price achieved by fleet vehicles rose by 6.5% year-on-year, and 8.9% month-on-month.
October was a more challenging month in other areas of the automotive industry, however.
In the latest dealer sentiment survey from Modix, Cox Automotive’s digital marketing arm, 55% of dealers reported that consumer demand was down year-on-year.
Philip Nothard, customer strategy and insight director at Cox Automotive, said: “Fleet volumes in the wholesale market have been fairly low over recent months, but October’s data suggests that green shoots are starting to show.
“Some of the additional volume will have come as a result of greater clarity on taxation. In addition, the challenging retail environment saw OEMs shift their focus to the fleet market.”
In terms of fuel type, electric vehicle (EV) prices continued to rise, with a 54% average price increase year-on-year. This large swing is partly due to the relatively low volume of EVs offered at auction but does indicate growing dealer confidence in selling electric vehicles.
The average price for diesel vehicles continued to fall, and this reflects the lower volume of 1-3 year old diesel vehicles entering the market.
Looking ahead, Nothard predicts that the Corporate Average Fuel Economy (CAFE) legislation due to take effect in January 2020 will begin to affect the market.
Nothard explained: “The CAFE legislation measures fleet emissions, and it’s likely that OEMs will be keen to offer favourable deals on higher emission vehicles between now and the end of the year.
“On the other side of the coin, we may see OEMs hold back lower emission vehicles until January, but hopefully 2020 will see improved availability of these popular vehicles.”
In the UK, Cox Automotive provides inventory, financial, media and retail solutions to clients including franchised and independent dealers, car supermarkets, vehicle manufacturers and fleet and leasing companies.
Cox Automotive brands in the UK include Manheim, Dealer Auction, Movex, RMS, NextGear Capital, Modix, wewantanycar.com and money4yourmotors.com.