Cox Automotive has reported signs of a positive upturn in the used car market after a 7% rise in prices at its Manheim auction centres during July.
Used vehicle prices rose to £7,298 (June: £6,816) – a 15% increase on July 2017 – as volumes remained stable, Cox’s date for the period revealed.
Dealer Auction, the trade-to-trade online auction platform recently subject of a joint venture agreement with Auto Trader, meanwhile, reported a 2% month on month increase in the average selling price of vehicles to £4,630as it grew volumes by 10%.
Philip Nothard, Cox Automotive’s head of external relations, said: "We're not surprised average selling prices are being pushed up, something we expect to continue over the coming months.
"As the market remains steady in terms of volume, demand for vehicles is heating up and dealers are now willing to pay more for quality vehicles that match their requirements."
Ford Focus, Vauxhall Insignia and Vauxhall Astra models up to 10-years-old with mileages below 50,000 all attracted value growth during July, according to Manheim, with a significant increase in the demand for convertibles also coinciding with the hot weather.
Also during July, NextGear Capital, Cox Automotive's wholesale stock funding business, reported average cost per unit increased to £7,529 (2017: £6,837) as average holding days increased slightly from 56.8 to 58.5 days.
In the retail market, Motors.co.uk continued to report stable figures, with the average sold price of vehicles up 1% to £14,314 (up 6% year on year), meanwhile.
Cox said that diesel cars continued to perform well, selling three days faster than the same period last year despite ongoing negativity surrounding the fuel, while petrols stalled – remaining on forecourts for an average of 52 days compared with just 48 in 2017.
Nothard said: "Dealers are reporting a slowdown in footfall over the past two months, although this is to be expected during the holiday season and with the hot weather we have experienced.
“Looking at footfall more closely, independents are selling vehicles three days faster on average than this time last year, with supermarkets taking an extra four days to sell stock compared to July 2017.
“Although, this could be temporary and down to an average 15% stock volume increase at supermarkets currently outweighing the summer demand."