Fleet used prices, alongside those for late and low vehicles, rose by 6.5% and 7.3% respectively in the third quarter of the year, according to Aston Barclay Insights.
This quarterly rise for ‘late and low’, which equated to £1,122, was attributable to a severe shortage of stock, boosting prices to £16,383.
Regarding the fleet segment, the price increase of £715 was as a result of an all-time low average of 39,000 miles and high dealer demand for cars in the £8 – 12,000 price band.
Martin Potter, Aston Barclay’s managing director, explained the market trends across Q3: “The market for used cars between 12 and 60 months old was unstoppable in Q3 which is why late and low and fleet prices were so high”.
Despite significant rises of up to 20% following the easing of lockdown restrictions, dealer part exchanges beyond 60 months of ages saw values fall across all sectors in the third quarter, by an average of 8.8%.
Potter continued: “Many buyers have started to only buy the stock they need for fear of market prices moving downwards and them being left with a number of cars owing them money”.
Supply within the old and budget part exchange sector improved substantially, whilst part exchanges between 55 – 78 months old fell as dealers kept hold of their stock to retail over sending them to auction.
Changes in buyer attitudes in early October reflect the future uncertainties surrounding the end of the original furlough scheme, repossessions, voluntary terminations and the impact of Brexit. Such uncertainties may impact on consumer and dealer confidence, said Aston Barclay.
Potter finished: “Any one of these could affect dealer and consumer confidence. However, we feel prices will remain healthy into 2021 as new car lead times keep extending. This means a flood of used cars hitting the market will be avoided as ex-business and personal leasing contracts are extended due to new car delays.”