Average wholesale used car prices dropped by
3% in May, following on from the 1.1% drop in April, leading to
speculation that a trend of ever-lower prices is beginning
following a price peak in March.
The 3% fall meant used cars were on average
£211 cheaper, at £6,808. The story was quite different for the
fleet sector, where prices were virtually unchanged following
April’s 3% drop. The average fleet vehicle cost £6,255 in May, with
dealer part exchanges down by 5.4% (£131) to £2,306 during the
month.
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Meanwhile, manufacturer stock values fell more
sharply, by 6.1% (£752) to £11,625, partly because of variances in
average age and model mix.
Compared to May 2010, the average age of
vehicles is up by three months to 53 months and the average mileage
is up by 4,721 miles to 54,698 miles so, unsurprisingly, the
average values are down 7%, with vehicles £516 cheaper on
average.
Notable drops in average fleet sector values
in May included small hatchbacks down 1.3% (£58) to £4,342, medium
family down 5% (£285) to £5,414 and MPVs down 8.8% (£657) to
£6,831. Dealer part exchange small hatchbacks fell 9.5% (£189) to
£1,807, medium family dropped by 5.7% (£130) to £2,142, large
family fell 9.1% (£164) to £1,628 and 4x4s fell 6.6% (£350) to
£4,945. Reductions in manufacturer stock values included superminis
down by 6.6% (£350) to £4,958 and medium family down by 6% (£582)
to £9,143.
Increases in fleet values for the month
included compact executive up 3.5% (£291) to £8,667 and 4x4s up
2.1% (£261) to £12,884. Dealer part exchange prices for executive
rose by 3.1% (£119) to £3,908 and coupe by 1.8% (£76) to
£4,197.
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By GlobalDataManheim Remarketing’s managing director Mike
Pilkington is pessimistic. He said: “The fall in retail demand can
no longer be attributed to a hangover from the extended holiday
period and, as we approach the summer months, there is likely to be
continued downward pressure on values and conversion rates. We are
starting to see some stock in short supply, which will help protect
values in specific sectors, but this challenging market is expected
to continue for the foreseeable future.”
