Despite seasonal softening in
demand CV registrations are on the rise, SMMT report.

 

Car values continue to strengthen with
prices rising by 0.6% across the market, Manheim Remarketing
reported last month.

Dealer part-exchange values rose by 3% between
April and May, while manufacturer stock rose in value by 1.6%.
Also, average values are nearly 9% higher now than they were a year
ago, the auction house reported.

Manheim attributed this growth in part to the fact
that demand in the dealer part-exchange market has been
“maintained”.

This growth, however, was partly offset by a 0.6%
decline in wholesale values in the fleet sector.

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By GlobalData

The decrease in fleet values was less than expected
given the significant fall in conversion rates during May,
according to Mike Pilkington, managing director of Manheim
Remarketing.

“The reduction in demand will inevitably result in
lower prices and vendors need to react to the realities of the
present marketplace,” he added.

The increase in manufacturer values are “an anomaly
arising from changes in mix”, Pilkington said, while dealer value
rises “indicate that demand has been maintained in the sector where
traditionally values are the last to be impacted by any market
changes”.

Average age of vehicles is up by four months
compared to May 2009, at 50 months, and average mileage is higher
by 3,015 miles at 49,777 miles, reflecting extended use during the
recession, Manheim said.

Meanwhile, seasonal softening of demand in the UK
has resulted in a slight drop in average wholesale used van prices,
despite an annual overall increase taking place in commercial
vehicle registrations.

Manheim Remarketing last month reported that the
average price of used vans dipped between April and May by 2.8%, an
equivalent of £126, to £4,290.

A combination of tough market conditions, rising
volumes “and the re-emergence of the traditional softening of
demand at this time of year” has resulted in the first decrease in
average values for nine months, according to James Davis, general
manager of commercial vehicles at Manheim Auctions.

Annual change in average wholesale used van values

Prices are expected to continue falling “given the
time of year and increase in supply”, Davis added.

The Society of Motor Manufacturers and Traders
(SMMT), meanwhile, reported that UK commercial vehicle
registrations rose year-on-year by 25% in May 2010.

Van registrations during this period rose by 32% to
17,025 units, the SMMT said, although truck registrations fell by
7.5% in May.

According to Manheim, the car van sector saw prices
drop 8.5%, the sharpest fall in the van sector, followed by small
panel vans, in which prices dropped by 2.4%.

Prices of used large panel vans of less than 3
tonnes, meanwhile, dropped by just 0.8%, although for equivalent
types of vans weighing less than 3 tonnes prices dropped by as much
as 7.9%.

Manheim reported seeing an increase in the volumes
of vans entering the market, largely due to the implementation of
several major daily rental fleet replacement programmes.

Assets sold at auction are generally holding their
prices at similar levels to those of last year.

Manufacturer cars sold by Manheim Remarketing were
on average 58% of their original new price, the sale level as of
May 2009, and 16% in the dealer sector, 1% up on last year.

The average age of fleet assets sold by
Manheim was 47 months in May 2010, half a year older than the year
previous. Average age of manufacturer’s cars is 22 months against
20 months in May 2009.

Annual change in overall car values