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Used car prices rise for third successive quarter

Used car prices have risen again for the third successive quarter according to Manheim’s latest Market Analysis report.

Despite seasonal influences pushing up used volumes to record levels, average values rose by 7.5% to £6,643 in Q1 2007. This is the highest average selling price recorded by Manheim since its Market Analysis report was launched in 2004. The original cost new price also reached a record high of 42.7%.

Most notably, this rise in values is set against a very buoyant 2006 market which saw none of the traditional dip in used prices at the year end.

In Q1 2007, average age fell by 1 month to 38 months and average mileage was down 2,580 miles to 48,084 miles.

In Q1 2007, the fleet/lease sector saw a 4.0% rise in prices, with late plate models from manufacturers seeing gains of over 6.7%. Average selling prices in the dealer sector were also up by 3.4%, with all vehicle segments seeing increases in average prices, in the case of the executive sector by over £1,000.

“The used market was very strong throughout last year against a weaker new car market and it continues to strengthen against improved new car sales in Q1 2007 which are up by 3%. The fact that used car volumes are up significantly also underlines the confidence and dependency dealers have in used car retail activity,” said Rob Barr, Manheim’s Group communications director.

An interesting trend is that mileage has fallen in the fleet sector for the fourth successive quarter to 56,974 miles, suggesting that company car drivers are covering fewer miles before their cars are being replaced.

#AM_ART_SPLIT# Fleet/lease sector

  • Average selling price rose £212 (4.0%) to £5,510
  • Average age fell by two months to 42 months, while mileage fell for the fourth quarter in succession (1,157 miles) to 56,974 miles
  • The % of original cost new price rose to 35.4% (up 1.3%)
  • Stocking days rose three days to 17 days but this takes into account stock held over from Q4 2006

    Manufacturer

  • Average selling price increased by £752 to £12,026, a 6.6% rise
  • This increase was achieved despite average age rising one month to 14 months
  • Average mileage fell for the third quarter in succession by 438 miles to 14,384 miles
  • % of original cost new price rose 1.2% to 64.7%
  • Stocking days fell one day to eight days

    Dealer

  • Average selling price increased by 3.4% or £84 to £2,528
  • Average age remained static at 87 months. Mileage fell 199 miles to 70,958 miles
  • % of Original Cost New Price rose 0.6% to 17.9%
  • Stocking days remained static at 4 days #AM_ART_SPLIT# Vehicle segments

    Here is a summary of the main movements in Q1 of 2007 by vehicle segment.

    Average Age

  • All segments fell - the greatest fall of three months for MPV models

    Average Mileage

  • Most segments fell, with Executive models recording the greatest fall of 5,764 miles
  • Only Medium Family models recorded an increase, (only 23 miles)
  • Lowest mileage of 21,994 was in the Supermini segment

    Average selling price

  • Superminis up £501 (+12.5%) to £4,501
  • Small Hatchbacks up £52 to £4,568 (+1.2%)
  • Medium Family up £237 to £5,833 (+4.2%)
  • Large Family up by £439 to £5,878 (+8.1%)
  • Compact Executives up £423 (+4.7%) to £9,442
  • Executives up by over £1,000 to £11,933
  • MPVs up by almost £900 to £7,335
  • 4x4s up by £665 to £11,514 (+6.1%)

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