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Part-exchange used car values rise in June, says Manheim

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The average value of used cars coming into the market through dealer part-exchanges rose by 2.6% (£88) in June from the previous month, according to Manheim.

The figures show that values rose despite average mileage rising slightly to 76,354.

Average values in the supermini and MPV segments were up by 4.9% (£112) and 8.9% (£321) on May, and by 14.5% (£302) and 25% (£782) year-on-year, respectively.

It says a significant factor in the higher values is likely to have been average vehicle age, which dropped by two months for superminis and by three months for MPVs, to 91 months and 101 months.

Part-exchange executive segment stock last month was significantly younger and with lower mileage – by six months and 2,791 miles – than in the same month in 2014. As a result, year-on-year values rose by 24.6% (£1,344).

Compared to the same month in 2014, the average value of part-exchange used cars was up 8.3% (£261). The average age and mileage of stock was down by just 0.4% in both cases.

Valuation services manager at Manheim Daren Wiseman said: “Our data shows that demand for good quality, part-exchange cars remains robust. Recent SMMT figures showed June to be the 40th consecutive month of growth in new car registrations, and demand for new cars is being echoed in the used market.

“With the general election behind us, the mood in the market appears highly positive. Indeed, the market research company GfK recorded consumer confidence at a 15-year high in June.”

In June, eight out of 10 vehicle segments analysed by Manheim saw growth in average values from May, with mini MPVs and 4x4s dropping slightly – the latter of which is predictable for this time of year.

Wiseman said: “While announcements in the government’s ‘Summer Budget’ will not impact used cars in the market today – besides the tax exemption for those registered before 1st January 1976. Chief executive Michael Buxton said: “It is likely that the £310 VED supplement for new cars with a list price of over £40,000 kicking in from 2017 will not just affect the car's first owner, but in many cases its second and third owners, too.”

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