Selling prices for dealer vehicles at auction witnessed an fell 8.2% month-on-month decrease in April, according to figures released today in the latest Manheim Market Analysis report.
Prices achieved for used cars at auction averaged £3,016 last month, down £269 on March values.
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According to Manheim, the fall can be attributed to an increase in both average age and mileage, to 101 months and 75,882miles respectively.
The report showed the large family sector was the least affected by the April slow down, with a mere £6 fall in average prices, reflecting static age values at 102 months and a 1,021 drop in mileage to 93,408.
Despite the slight fall, values remain up year-on-year, with average selling prices rising 7.7% from £2,801 to £3,016, despite a 645 rise in average mileage and a two-month age increase.
Daren Wiseman, valuation services manager at Manheim Auctions, said: "The latest SMMT data highlights that new car registrations rose 8.2% in April to 177,820 units, which was the 26th consecutive month of growth. (link to SMMT story)
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By GlobalData"As we anticipated last month, this continued rise in the number of new vehicle registrations during April did have a negative impact on the average selling prices."
He added: "At auction there continues to be pent-up demand among buyers for quality used cars, but the continued increase in the number of vehicles coming to auction has definitely caused a switch from a sellers’ market to a buyers’ market."
Wiseman added that CAP warnings about a further dip in values in May should not dampen optimism about signs of recovery in the market, and said: "The last week of April has seen volumes decrease slightly and this has continued into May, which has seen average selling prices plateau.
"If this trend continues, then we should see selling prices stabilise during May, but it remains important that vendors continue to ensure cars are in a ‘retailable’ state at auction in order to ensure the full value of the part-ex car is achieved as we move towards the summer months."
