Dealers should be looking ahead to a good year as part-exchange values continue to follow an upward trend, according to Manheim’s latest monthly Market Analysis.
The average selling price of dealer part-exchange vehicles grew by 15.7 per cent over the last twelve months, reaching a value of £2,826 in January 2013.
Looking at the monthly figures in more detail, the strong values achieved at auction in January have continued, despite a marked increase in the age of cars, jumping from 99 to 100 months.
This 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.
The Manheim report has also demonstrated that there has been an increase in the residual value of cars going to auction during the first month of 2013. January has seen values rise to 18 per cent of their new price – only the second time this has happened in the last twelve months.
These figures signal a clear upward trend in the relative value of part exchange vehicles at auction and continue to reflect the strength of the used car market.
Daren Wiseman, valuation services manager at Manheim Auctions, said: “It would seem that the threat of a triple dip recession could conversely be helping to maintain strong used values as buyers opt for well cared for used stock over brand new models.
"With the prospect of car buyers considering higher mileage vehicles in place of purchasing brand new models, motor retailers with the right mix of used vehicles will be set to have a good 2013, especially as the much-heralded economic revival remains some time off.”