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Used car values fall 2.3% in April

Average wholesale values have fallen in April by 2.3% (£172) to £7,281, which follows three consecutive monthly rises which had seen values increase by 8% since December 2009.

According to Manheim Remarketing’s latest market analysis fleet values in April fell by 1.5% (£101) to £6,648, dealer part exchange values fell by 0.6% (£14) to £2,245 and manufacturer stock was down by 3.4% (£454) to £12,703.

Despite this latest fall, overall average used car values are still over 7% ahead of the same period last year.

Both average age and mileage are up on last year by three months to 50 months and 3,400 miles to 50,879 miles reflecting extended use during the recession. The stronger position in 2010 over 2009 is evident across all sectors with fleet values still ahead of April 2009 by 7.0%, Dealer also up by 5.2% and Manufacturer up by 6.7%.

Again, even with the weakening prices in April, the continued strength in the market this year is further underlined when looking at the average % retained of original new price, which is currently at 39% compared with 36% in the same period last year.

Mike Pilkington, Manheim Remarketing managing director, said: “The traditional seasonal trends affecting average wholesale values which were missing last year have returned in 2010.

“The market toughened more considerably in April than a reduction of just 2.3% would suggest. Although the General Election may have impacted on levels of demand in April there is now more stock available in the market so we would expect values to soften again in May.”

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