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‘Rays of sunshine’ in market

Manheim’s latest Dealer Dashboard saw a continuing drop in the average selling price of cars from dealers during May, with the MPV and 4x4 sectors affected the most.

The decrease in value, of £240, is reflective of a rise in average age of one month and mileage of 2,177.

Despite this, the executive car, compact executive and supermini segments have seen average selling prices increase since April.

The executive sector saw the biggest rise, with the average selling price rising by £335 to £4,939, due to the fall in the average age of one month and mileage of 2,642.

Andy Coulthurst, managing director for Manheim’s classified site, said: “We are entering that strange period mid-plate changes where people think more about summer holidays than changing their car.

“However, the retail market is seeing rays of sunshine.

"Demand is increasing, despite continuing messages about mixed economical fortunes.

“Consumers are showing that there is only so long they want to keep a vehicle and retailers have to be keen on the deals they offer to attract these buyers.

“More of the retailers I speak with are commenting on positive demand over negative demand for vehicles and the wholesale market seems to have turned in the favour of the buyer.”

The wholesale market for dealer’s unwanted part-exchanges saw prices drop £55 or 2.3% to £2,380 as age and mileage increased slightly.

Conversion rates remained flat.

Demand from franchised dealers for ‘retail-ready’ de-fleeted cars is still strong.

The market remained quite steady during May, with values falling by just £8, or 0.01%, since April and with no change in the average age at 52 months.

The average vehicle mileage fell by 413 miles. 

May’s average used car value of £6,838 was 3.1% or £204 up year-on-year.

Particularly dynamic segments include executive models, 17.8% ahead, and 4x4s, 23.9% up.

Daren Wiseman, general manager of Manheim Seller Advance, said: “Used vehicle values remain higher than they did 12 months ago, but we are seeing that the market is full  of vehicles ready to sell to whole- sale customers and they are being more selective about what they  want to buy.

“Values are down month-on-month, based on the increasingly strong buyer market, but the message remains the same.

“If you have the right retail-ready stock then it is going to achieve a good price.”

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