Dealers continue to reap the benefits of rising part-exchange values as prices reach an all-time high, according to Manheim’s latest monthly Market Analysis.
February 2013 saw average part-exchange values reach £2,938, a growth of more than 20% year-on-year.
The rise during the past 12 months in part-exchange values achieved at sale has been mirrored by the steady increase in the retained value of used cars coming to auction compared to their original retail values.
These values have shown a 3% rise year-on-year, hitting 18% in February 2013.
Manheim believes these figures signal a clear trend and reflect the strength of the used car market at present.
Looking at the monthly figures in more detail, the average value of cars from the dealer sector has increased by £112, or 4%, during February 2013, despite an increase of 720 miles in average mileage.
More generally, the average selling price rose for eight of the 10 segments covered by Manheim’s report, most notably for coupe models, which increased by £444 or 9.4% and small hatchbacks, which rose by £128 or 6.4% during the month.
Daren Wiseman, valuation services manager at Manheim, said: “Strong demand for used cars continues to keep average part-exchange values high as buyers opt for used models over new. This trend is set to continue for the foreseeable future unless manufacturers elect to switch to more value-added marketing activities or very competitive finance options to drive a distinct shift in demand for new vehicles.
“The strong prices achieved are also driven by a shortage of quality retail profile stock and this shortage, although maybe easing through March, looks set to continue.”