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Part exchange values recover in September

After a slight increase in average values of part exchanges in July 2007, prices fell slightly in August from £2,092 to £2,034, but recovered ground again to £2,065 in September according to Manheim’s latest market bulletin.

Volumes of part exchanges during the period were relatively static year on year with a marginal increase in September which mirrored the small increase in new car registrations, up 1.5%.

However, Manheim reports that retail activity is still quite fragile and is not consistently buoyant across the whole market. Some dealers were pointing towards tougher trading times ahead, particularly in late plate market, with most suggesting that the less price-sensitive segment was still pretty active.

In August average petrol prices of part-exchanges remained constant at £1,833, a fall of just £12, with age increasing one month to 91 months and mileage increasing by 1,079 miles to 69,530 miles. September values fell again by a further £23 with average age increasing one month to 92 months and mileage increasing by a further 500 miles to 69,943 miles. Nothing inconsistent with this time of year for these figures.

Part-exchanged diesel derivatives however fell by £166 to £3,089 in August at 79 months (an increase of 1 month) and 88,320 miles (an increase of nearly 3,000 miles). A change in model mix as well as the mileage increase helped compound this larger than average monthly fall.

But in September the average mileage of diesel part-exchanges fell by 2,278 to 86,044, with the average age reducing by 3 months to 76 months; both contributing to a strong price recovery of £306 to £3,395.

In September executive diesels returned the highest % of cost new price at 27% (72 months/92,561 miles), followed by diesel MPVs at 26% (70 months/79,804 miles) and diesel compact executive models at 26% (67 months and 89,695 miles).

Meanwhile, small hatchbacks were the best performing petrol models at 19% (89 months/59,657 miles), while the petrol Large Family sector generated the lowest return of all cars at just 8% (£1,291) at an average of 97 months and 87,978 miles.

Rob Barr, Manheim’s group communications director, said: “Dealers are continuing to work against a tough retail market and petrol models in particular are getting gradually older and with higher mileages which is reducing prices accordingly. “Conversely, diesel values still appear to be very strong, coming to market around 16 months younger, but with nearly 20,000 more miles on the clock. However the signs appear to be suggesting that the window for buoyant retail sales may be quite short in the run up to Christmas.”

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