The used car market continues to show strength in 2014 with the value of part-exchange vehicles up 20.4% and de-fleeted vehicle prices climbing 4.6% year-on-year in August according to data from vehicle remarketer Manheim.
Part-exchange values began to flatten out in August according to Manheim with a £36 rise in average values compared to the month before. Defleeted vehicles saw a fall of £14 compared to the month before, which was an improvement on the fall of £103 in July. (URL)
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August saw monthly growth in part-exchange prices seven out of the ten market segments. Compact executive cars, such as the BMW 3 Series, and Executive models saw the strongest growth month-on-month growth (£239 and £415 respectively.) This was despite both segments seeing an increase in their average mileage.
Defleeted vehicles year-on-year have grown in value less dramatically as the volumes coming to the market and mileage of vehicles has increased. The 4.6% rise in August followed a 4% rise in July. Manheim said this growth will eventually cede to a fall in values as the number of cars coming onto dealers and fleet remarketers grows with the expected record September plate change.
Daren Wiseman, valuation services manager at Manheim, said; "While September should be another record-breaking month for new car registrations, it is unlikely that these heady heights will be sustainable in the long-term and we expect the markets to realign and stabilise over the coming months. For dealers looking to shift part-ex stock, this means taking a realistic overview of the quality and volume of vehicles in the market to price stock accordingly."
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