A weekly round up of used car values and remarketing news, including: Chevrolet RVs, Glass’s on the year in finance, CAP’s Gold Book launch, and latest figures from BCA and Manheim.
Chevy levy not heavily unsteadied
General Motors has announced Chevrolet will no longer have a ‘mainstream presence’ in Europe as of 2016, but EurotaxGlass’s believes this will have a minimal impact on the RVs of the brand’s models.
EurotaxGlass’s, which operates 20 companies across 30 countries, including Glass’s in the UK, has concluded – from a survey of Chevrolet sales volumes, channel mix, current RVs and recent historical market exits – the relatively low RVs and presence of the brand in Europe means future values should not be strongly affected.
Dean Bowkett, technical director and chief editor at EurotaxGlass’s Group, said: "We have already spoken to senior personnel within GM who have confirmed that warranties will be honoured and parts and service arrangements will be in place to satisfy the demand for repairs and maintenance of Chevrolet’s products going forward, many of which share common components with their sister brands anyway."
Glass’s: Smaller brokers and subprime on the rise
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Meanwhile, Glass’s has spoken of the effects of a changing car finance landscape this year.
In its 2013 editorial review, the vehicle valuation company, said the increased availability of motor finance has brought with a greater sense of cars being affordable to retail customers. Applications and acceptances for finance are both up, particularly as reported by smaller brokers and subprime lenders, while default levels have declined.
Meanwhile, the condition of ex-contract hire vehicles has declined during the year, squeezing margins for dealers who are also under pressure from increased demand for documentation of compliance with consumer rights.
CAP launches ‘gold’ standard
Vehicle valuation firm CAP Automotive has launched its Gold Book and Gold Book iQ forecasting tools, which the firm has described as the biggest change in its RV prediction system since the release of CAP Monitor in 1991.
The Gold Book will tie forecasts to ‘clear views’ of the performance of the used market, differentiated by age, vehicle sector and fuel type. The iQ extension will also allow for greater access to CAP’s RV calculations, down to model derivative level.
CAP has said the two products will offer more variables, faster reactions to markets, transparency of methodology, editorial commentary, alert options and macro-economic inputs.
British (used) Car Auction / Audi records
Average used car values have set a new record, again, up to £7,489 in November with sales against CAP hitting 96.57%, according to British Car Auctions (BCA). The average auction price was up 4.3% month-on-month and 16.1% year-on-year.
The average fleet and lease value was £9,301, the fifth record value in the past six months and up 1.7% month-on-month and 14.5% year-on-year. Sale against CAP was 96.02%.
Dealer part-exchanges averaged £3,857, up 0.4% on October and up 22.7% on November 2012.
At £21,433, the average price of a nearly-new vehicle at auction was the highest it has been in 2013 and the third-highest value of the past 24 months behind £21,601 in October 2012 and £22,337 two months after that.
BCA also reported its 20 November Audi event sold 195 of the 198 vehicles on sale.
The vehicles were entered for sale directly by Audi UK, Alphabet, LeasePlan and Volkswagen Financial Services, and sold with an average 104.51% against the CAP Clean rate.
Part-ex and vans all-time-high, fleet down – Manheim
The average selling price of a part-exchange vehicle hit a record high of £3,162 in November, up 9.1% month-on-month, according to remarketer Manheim.
Average age was up by a month compared to October at 98 months; average mileage was also up 0.8% to 75,937 miles.
The average selling price of de-fleet vehicles was down by 1.7% (£131) month-on-month but up 18.4% (£1,180) year-on-year at £7,593.
By sector, Mini MPV models saw values up by £1,220 on October’s price, which Manheim attributed to average age and mileage falling. As opposed to part-ex vehicles, the 4×4 sector saw the greatest decline in ex-fleet average values, down £1,164 during the month.
However, the average auction price in the wholesale light commercial vehicle (LCV) market also posted a record high of £4,424, up 0.8% year-on-year, surpassing the previous apex of £4,317 in April 2010.
The rise comes despite the average LCV at auction having an increased mileage and age. With the fall in ex-fleet prices, Manheim said a variation in volumes was inflating headline values.
For instance, the value of small panel vans fell 0.7% month-on-month to £4,213, while the value of large panel vans was up £515 over the same period.
SUVs: Searching unlocks values
Among Manheim’s analysis, the best performing part-exchange vehicle sector was 4x4s, with average value climbing 26.9%, or £1,593, during the month.
Motors.co.uk, the car-search website owned by Manheim, has expanded on this by reporting customer searches for 4x4s was up by 32%, November compared to September.
The three most searched-for models were the Toyota Rav4, Honda CR-V and Volkswagen Tiguan.
Andy Coulthurst, managing director at the website, said there was a ‘traditional’ rise in interest for 4×4 vehicles as winter begins: "However, due to this high demand, the market is likely to see pressure on prices, with high values secured for good quality used stock and increased competition over the best vehicles. Savvy dealers will be scouring the wholesale sector now to pick up the best deals to retail later in the month."
G3 by numbers
Completing the advice on 4x4s, G3 Remarketing has predicted a seasonal swell in value for the models around January 2014.
According to G3, 4x4s are currently averaging 100.4% against the CAP Clean rate while the small car sector is ‘hovering’ around 99% of CAP, with diesel engines exceeding 100%.
At the same time, contract hire stock is filtering into the market, increasing volumes in November by 3%.
A full interview with Glass’s and further statistics from G3 Remarketing will be published in the December issue of Motor Financemagazine.