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Used car prices up as sold volumes fall in April

Cox Automtive report used car prices

Used car prices increased year-on-year in April in wholesale and retail markets.

Cox Automotive’s wholesale and retail brands also saw reductions in sold volumes in both markets.

Wholesale

The average selling price recorded at Manheim’s car auctions was £5,585, which was 6.2% higher than the same month in 2016.

Speed of sale remained stable at 9.7 days in stock. Sold volumes were down by 11.2%.

The average mileage of cars sold by Manheim last month was 61,236 – down 6.3% from April 2016.

In the ex-fleet market, Manheim saw average selling prices soften by 2.4% to £9,405, while overall sales performance against guide prices remained consistent year-on-year.

Volumes for ex-fleet vehicles rose by 6.6% compared to 2016 and days in stock fell by an average of three days.

Average mileage for ex-fleet cars was recorded at 36,851, which was 6.4% lower than the same month last year.

The number of part-exchange cars sold by Manheim in April was down 18.2% year-on-year, with the average selling price rising by 2.4% to £3,630 and days in stock being slightly lower.

Average mileage was recorded at 73,663, which was 2.5% lower than the previous April.

Retail

In the retail market, Motors.co.uk saw sold volumes fall by 8.9% year-on-year, while the average selling price rose by 5.6%, to £13,024.

The average selling price of petrol cars sold on Motors.co.uk £10,090 and the average price of diesel cars was £14,777, reflecting year-on-year increases of 4.8% and 0.9%, respectively.

At Manheim, the average selling price of diesel cars was £7,382, up 0.8% year-on-year, and they sold quicker, recording an average of 9.3 days in stock.

The average price of petrol cars was £3,964, which was 12.8% up from April 2016 and speed of sale fell to 8 days in stock.

Stocking finance

For wholesale finance business, NextGear Capital, funded a total of 6,870 vehicles in April and saw the average cost of units funded rise 2.9% from March to £6,692.

NextGear Capital currently has over £142 million of dealer stock funding in the UK and over €20m active in Ireland.

Trade-to-trade online

Trade-to-trade online auction platform Dealer Auction saw the number of vehicles sold last month remain stable at 6,616.

The average selling price rose by 12.0% from April 2016 to £4,062, due to a decrease in sub-£3,000 stock sold and an increase in vehicles selling for over £3,000.

Comment

Daren Wiseman, Cox Automotive UK head of valuations, said: “In terms of used car sales, we saw a slightly slowdown in the used car market in April, following a very strong March.

“However, from a performance perspective, Cox Automotive clients selling vehicles in the wholesale and retail markets saw average selling prices rise compared to last year, with speed of sale remaining stable.

“The latest industry analysis suggests wholesale prices may come under pressure for the remainder of the year, meaning auction vendors need to be realistic with reserve setting.”

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