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Rival auction houses in survey agreement

The used car market is making steady progress as dealers prepare for the second half of the year.

Reports published by auction houses Manheim and BCA both agree that demand for remarketed fleet and lease cars is strengthening as dealers put increased emphasis on their used car departments to buoy up declining new car sales.

BCA reports the average values of defleeted cars having risen slightly while Manheim finds it quite constant, although a higher volume of cars is coming to auction, giving dealers more choice. Both report average mileages of fleet vehicles as being in slight decline.

High demand for diesels continues, with these vehicles achieving a significant premium over petrol models, despite having significantly higher mileages.

The picture is not so rosy regarding nearly new cars and dealer part-exchanges. Both companies report a stall in values of part-ex cars, while cars remarketed by their manufacturer remain volatile in value.

“Conclusions from the study should help people better understand the effects of wholesale and retail demand,” says a Manheim spokesman.

BCA adds: “With nearly-new prices remaining volatile, stability has come from the bread-and-butter fleet and part-ex sectors.”

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