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