Dealer part exchanges saw a “healthy rise in prices” on the back of strong consumer demand and restricted supplies of older used cars caused by industry scrappage deals, according to Aston Barclay.
The remarketing specialist reported in its latest Used Market Insights document that average prices in the three part exchange sectors analysed in the report experienced a price increase in the period from Q1 2017 to the end of Q1 2018.
Martin Potter, Aston Barclay’s group operations director, said: “The impact of many older used cars being taken out of the market by scrappage has boosted part exchange prices, while demand and prices of ex-fleet stock have been consistently high.”
During that 15-month period newer part exchanges (55-78 months old) rose by 27.7% (£1,595) to £5,976, older part exchanges (79-126 months) by 17.6% (£527) to £2,999 and budget part exchanges (126 months+) by 20% (£193) to £964.
Used fleet prices were extremely stable over the same period at a high level with average prices rising by £22 from £9,093 in Q1 2017 to £9,315 in Q1 2018 as average diesel used fleet car prices fell by just £34 to £9,768, while fleet petrols also fell by just £50 to £7,347.
The biggest price movement was the 17.7% rise (£2,238) in fleet alternatively fuelled vehicles (AFVs), despite an average mileage increase of 5,483 miles, however, auction volumes remain limited, Aston Barclay said.
Q1 2018 was particularly busy with a range of good ex-fleet stock in the market with strong bids and conversion rates.
Across all sectors average prices rose £9 to £6,618 from Q1 2017 to Q1 2018 against a small mileage increase from 62,725 to 63,225 miles, and an age increase from 75.1 to 77.1 months.
Potter said: “Demand for diesels from the trade has been healthy during the last 15 months, while hybrid prices continue to rise as they establish confidence with buyers.”
Aston Barclay reviewed the used performance of SUV and hatchbacks from nine car makers sold at auction during Q1 2018 and found that SUVs get replaced more often and with fewer miles (39 months/41,988 miles) than hatchbacks (42.3 months/50,194 miles).
There is a difference in sale price of £3,269 between used SUVs (£11,759) and hatchbacks (£8,388) at auction, which stands to reason as on average new SUVs cost 20% more than hatchbacks.
The number of stocking days is very similar, however. An SUV average of 17.4 days compares to 17 days for a hatchback.
Potter said: “The Nissan Qashqai was the first to be launched in the UK over a decade ago and we have seen countless new models launched by car makers.
“Their desirability with motorists has meant SUVs have fitted straight into the used market with minimal fuss and prices are generally very strong.”