Faltering, minimal stock levels of used cars
have continued to keep prices above expectations in the
part-exchange market, according to vehicle remarketer Manheim.
While average age and mileage of dealer
vehicles at auction have remained relatively steady, month-on-month
and year-on-year, at 99 months and 75,869, the average selling
price in August fell by only 0.3% month-on-month to £2,469, 11.62%
above the August 2011 price.
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Although the Society of Motor Manufacturers
and Traders has reported
rising sales and expectations of new vehicles throughout the year
in the UK, and particularly
compared with Europe, Darren Wiseman, valuation services
manager at Manheim Auctions, said the trickle down to the used
market will not appear soon.
“Clearly, these strong part exchange values at
auction indicate a chronic shortage of quality cars under the magic
100k mileage level,” said Wiseman. “How long these market
conditions will continue is a bit of a conundrum.”
The shortage has also been reported by British
Car Auctions, which posited an
average rise of 4.5% in used car values year-on-year in
August.
“This year we’ve already seen franchised
dealers buy used models and older cars for their dealer forecourts
that would previously not be in the mix,” added Wiseman.
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By GlobalDatarichard.brown@vrlfinancialnews.com
