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Part-ex values buck seasonal trend, says Manheim

Dealer part-exchange values in November remained strong at an average of £2,804.

The value only dropped slightly from the year's high point of £2,807 in October according to the latest market analysis from Manheim.

Looking at the monthly figures in more detail, the strong values achieved at auction in November have continued, despite a marked increase in both the age and mileage of cars; jumping from 97 to 99 months and 73,755 to 76,021 miles respectively.

Manheim believes the trend clearly reflects the strong used car market at the moment, which is being fuelled by the lack of supply from both fleets and private vendors.
Daren Wiseman, valuation services manager at Manheim Auctions, said: “While the high street is still a tough place to be, motor retailers with the right mix of used vehicles are set to have a good 2013.

"Car buyers are increasingly considering higher mileage vehicles in place of purchasing brand new models, especially as the much-heralded economic revival remains some time off."
According to the Bank of England’s latest prediction, economic growth will remain below pre-financial crisis levels for at least the next three years and this will deter buyers from major purchases such as brand new cars.
Wisesman said: “The recession has also changed buyers’ mindsets when it comes to higher mileage cars. While customers would have walked away from an 80,000 model before the recession, drivers are now much happier to consider cars that have done well in excess of 100,000 as long as they have been well maintained. This all bodes well for the part-exchange market as we approach 2013.” 
The Manheim report also measures car prices attained at auction, compared to their original, new value. While this figure for dealer part-exchanges remained constant at either 15 or 16% during 2012, it hit 18% in October and 17% in November. This signals a clear uplift in the relative value of part exchange vehicles at auction and reflects the strength of the used car market.

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