Age and mileage of resale
vehicles on the rise as recessionary mentality among buyers kicks
in.
Go deeper with GlobalData
Average wholesale used car values fell by
4.7% (£346) to £6,978 in June, according the latest figures from
Manheim Remarketing. The decline follows a slight increase of 0.6%
in May.
Values in the fleet sector fell by 7% (£465) to
£6,144, dealer part exchanges fell by 6.5% (£150) to £2,163 and
manufacturer stock fell by 1.9% (£240) to £12,664.
Overall average used car values are now only 0.7%
(£52) ahead of the same period last year. Average age is up by
three months compared with June 2009, to 51 months, and average
mileage is higher by 1,986 miles at 50,896, perhaps reflecting
extended use during the recession.
This is particularly evident in the fleet sector
with average age and mileage of small hatchbacks up by eight months
and 3,500 miles respectively; compact executives up by seven months
and 7,500 miles; and coupés increased by nine months and 6,500
miles.
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By GlobalDataAlthough the overall position in 2010 compared with
2009 may suggest that all sectors have performed similarly, the
fleet sector is actually down by 5.1% (£332) over the period while
dealer is up 6.7% (£135) and manufacturer is up by 4.4% (£533).
Manheim Remarketing managing director Mike
Pilkington said: “Given the unusually difficult trading conditions
in June a fall of this magnitude, significantly above the seasonal
norm, is no surprise.
“A host of short-term factors such as May’s general
election, the Emergency Budget and the World Cup have made it
harder to predict the underlying level of economic confidence.
“Unless there is a more positive outlook for
consumer demand through the traditionally quiet period of the
summer months then only a reduction in vehicle supply is likely to
ease the pressure on prices.”
