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Fleet values holding firm

Executive cars and 4x4 models have been hit by a price drop in auction halls, but other sectors of the market are showing increases.

According to data collated by Manheim in its latest Market Analysis Report, the average price reached at auction for executive cars such as the Audi A6 and BMW 5-series, fell by 1.9% in the second quarter of 2006 compared to the same period last year.

And 4x4 models such as the Land Rover Discovery and Mitsubishi Shogun were also hit, with the average price dropping by 2.2%.

However, supermini prices went up by 4% while upper-medium models bucked the industry trend and rose by 5%.

Elsewhere, compact executive values (cars such as the BMW 3-series and Audi A4) were up by 2.7%. Manheim’s analysis shows little change in the small hatchback, medium family and MPV sectors.

Used values in the fleet market remained constant at £5,125, as did average age at 44 months, while mileage fell almost 2% to 59,263. The proportion of original new price remained at 33%.

Average stocking days fell to 17 days.

John Bailey, chief executive of Manheim, said: ‘Values of the traditional three-year-old fleet vehicles have remained pretty constant in quarter two this year.

‘However, the younger cars coming from the manufacturer sector have seen the expected seasonal fall in values of around 3.8%.’

According to Manheim, market volumes increased by almost 6% in the second quarter, following an increase of almost 25% during the first quarter, after a greater than anticipated downturn during the final two quarters of 2005.

And the proportion of the original new price retained increased by 0.5% to 38.7% – 2.9% higher than the same period last year.

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