Average car values dipped 2.3%
in April although growth seen year-on-year.
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The car remarketing sector
remains strong, with overall average used car values 7% higher than
they were a year ago, according to Manheim Remarketing’s latest car
analysis.
Average values totalled £7,281 in April compared
with £6,762 a year ago, with the strongest increase of 7% occurring
in the fleet sector.
The value of second hand cars sourced from dealers
has increased by 5.2%, and in the manufacturer market by 6.7%.
It is not all good news, however, as average
wholesale values in April fell month-on-month by 2.3% to
£7,281.
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By GlobalDataManheim MD Mike Pilkington said: “The market
toughened more considerably in April than a reduction of just 2.3%
would suggest.”
Also, fleet values fell on average by 1.5% to
£6,648, while dealer exchange values dropped by 0.6% to £2,245.
Car values are, however, being retained for longer,
Manheim’s figures show. For fleet cars, the average percentage of
original new price in April totalled 38%, against 35% a year
ago.
The equivalent for the manufacturer market totalled
60%, against 56% in April 2009, and 16% in the dealer sector, 2% up
year-on-year.
Extension of deal terms during the recession also
meant that average age of cars sold was 50 months, three months
more than a year ago. Average mileage also rose by 3,400 miles to
50,879.
Meanwhile, van sale prices continue their
inexorable rise, although experts predict a downturn to occur in
month to come as supply increases.
Manheim’s remarketing arm
reported in its monthly Market Analysis for Vans that
average wholesale used van prices rose in April by 4.2% compared to
the previous month to reach £4,416.
According to Manheim, wholesale used van prices
have increased by as much as 43.8% since April 2009, despite
average age being up by two months at 54 months and average mileage
up to 73,368, an increase of 5,442 miles.
The bigger end of the van market has seen the most
significant increases in prices, with large panel vans greater than
3 tons increasing in value month-on-month by 11.6% to £4,727.
Manheim general manager for commercial vehicles
James Davis linked this increase to a “wholesale supply
shortage”.
Large panel vans less than 3 tons increased in
value by 4.4% £4,115, small panel vans by 4.2% to £4,735, and buses
by 3.6% to £5,744.
These rapid increases in van values are expected to
slowdown, however, as supply picks up again.
Davis said: “To date the effect of traditional
seasonality has been minimised due to under-supply but the market
is becoming tougher and there is evidence now that wholesale van
de-fleet volumes are increasing which will put pressure on values
in the weeks to come.”
