Audi, Mini and lower-emission and lower-tax cars are performing well at auction, according to G3 Remarketing. The vehicle auction firm said ex-fleet and lease Audi models with specifications beyond standard were exceeding CAP valuations, as were Mini models.
Matt Dale, director of G3 Remarketing, commented: "Audi product is proving interesting and with the largest sway in the marketplace, with standard spec A4 proving a challenge in the marketplace, but A4 with spec going very well and achieving at times in excess of 118% of CAP values.
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"In addition to this Mini product is remaining relatively strong and on average achieving in excess of 117% of CAP value."
Similar to findings from Autorola, the penetration of diesel in the auction market has diminished of late, which G3 attributes to fewer diesel cars entering the fleet market three to four years ago, although residual values remain strong for diesels. While Autorola noted the petrol-engine models of the Peugeot 107 and 308 and the Toyota Aygo and Yaris were being preferred to their diesel counterparts,
particularly in urban areas, G3 cited the Citroën C1 and DS3, as well as the Peugeot 107, as lower-emission and lower-tax models performing well, each achieving in excess of 110% CAP.
Despite this, said Dale, "big petrol engine, high-spec cars are achieving a great return" and lenders should have "no need to be scared of financing these.
"The penetration of diesel product has lessened in the marketplace, which is probably due to fewer cars entered new into the fleet market three to four years ago," said Dale, although "the average value of a fleet and lease diesel car is at times as much as 30% more than its petrol counterpart.
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By GlobalData"Residual values for diesel product are still strong even though the prices at the pump are cheaper for petrol. Large petrol engines are commanding high prices and great value against guide prices as they are in demand for the export market, so fleet managers and
procurement teams should not discount these."
However, Simon Henstock, UK operations director at British Car Auctions (BCA), has said the continuation of average high prices at auction of late were "largely as a result of the constricted supply rather than strong demand". The average auction value for a used car, according to the March Pulse Report from BCA, was exactly £7,000, down £56 from February but up from £5,974 in March 2012, with an average value against CAP of 97.8%, and the fourth month in a row average values have registered over £7,000.
Fleet up ‘slightly’
According to Dale, G3 figures for the average age of fleet vehicles so far this year has stayed "rather consistent" at around 43 months, up slightly year-onyear. Average disposal miles were also up slightly at 59,000, compared to 57,500 in March 2012, as is average value at around £9,000.
Dale added this was "surprising as we expected the annual average value to dip this year by £100 to £200."
BCA statistics have shown a dip in fleet and lease values month-on-month of £117, or 1.3%, to £8,734 in March, although up by 12% year-onyear, with the average value against CAP of 97.68%. Cars were also coming to market earlier in 2013, with an average age of 40.4 months compared to 41.4 a year before, while remaining virtually static month-on-month.
Other trends
Looking at what else in remarketing might catch the attention of the car finance market, Dale identified the rise in nearly-new, performance at opposite ends of the range of values and the potential in sprucing up a car.
G3 reported a 15% increase in nearly-new and almost-delivery-mileage vehicles into the marketplace, which Dale believed may be "due to early repayment defaults or a larger take-up in cooling-off periods when a new car is purchased".
He also advised that "from a finance perspective" the better performing cars at auction "seem to be those under the £7,000 mark or over £125,000", both of which "always achieve a greater return against guide prices".
Looking at finance possibilities, Dale pointed to greater return on investment for those companies taking the opportunity to refurbish cars which could raise a sale above average values "by as much as £600 to £700 for a spend of only £200".
richard.brown@timetric.com
