“While quality stock remains in short supply we are likely to see average values continue to rise.”

He said more vehicles than expected came into the market from January to May, cooling prices, but that volume levelled out in June, which led to the price rise.

“Demand for stock remains strong and we expect supply based on the 10% half-year increase in new car registrations to remain strong, so we predict that values will probably yo-yo for the remainder of the year.”

 

Retail stock acquisition

Manheim’s Market Analysis for June showed the average selling price of ex-fleet vehicles reached a 2013 high of £7,368, a 10%, or £669, increase year-on-year. It was a £530 gain on May’s average, but Manheim said this reflected a fall of four months in the average age and a 1,637 reduction in mileage to 57,638.

The average selling price increased for nine of the 10 sectors during June. The only fall in value was recorded by the 4x4 segment, which declined by £690 despite no increase in the average age and an average mileage rise of 689.

Manheim’s Wiseman said: “The average age of de-fleeted vehicles has returned to 48 months for the first time since August 2011. Over the three years prior to this we saw ages fluctuate between 36 and 48 months, which is the traditional cycle for vehicles. However, since then the number has edged upwards.

“It will be interesting to see if this return to the traditional age is a sign that business confidence is returning and, as such, the fleet and leasing cycle is returning to normal.”

BCA’s Pulse report for June shows its ex-fleet vehicles reached a record average monthly figure of £8,860, a £56 or 0.6% rise since May and £818 or 10.1% higher than June 2012. Average age and mileage were virtually static from May at 39.44 months and 44,962, but were lower than a year ago. BCA’s Henstock said: “Trade buyers are showing less interest in cars requiring significant work ... unless these vehicles are priced very competitively. In contrast, vehicles offered in ready-to-retail condition are highly sought after.”