Average part-ex selling prices drop across the board
April saw a drop in the average selling price of part-ex vehicles across the board, with the 4x4 sector affected the most, according to Manheim's latest Market Analysis. However, despite the average selling price decrease, there are some sectors of the market - notably medium and large family models - that continued to fare comparatively well.
Latest data from Manheim's monthly Market Analysis shows that the executive car and 4x4 sectors saw the biggest drops in price over the past month. 4x4s were most affected, as the average selling price fell by £779 since March 2013, while the executive car sector fell by £414. However, although the average selling price for both the large family and medium family sectors also decreased, they only fell by £87 and £51 respectively. This trend clearly reflects the current economic situation, which is fuelling the trend towards more affordable vehicles.
Daren Wiseman, valuation services manager at Manheim Auctions, commented: "As we predicted earlier this year, the second quarter of 2013 is exhibiting the classic signs of a buyer's market, with vendors having to ensure cars are in a 'retailable' state at auction. This means spending more time on the preparation of the car - even investing in some new hub caps - if that's what it takes to ensure the full value of the part-ex car is achieved.
"Looking at the bigger picture, the challenge facing dealers at present is the chronic shortage of good quality used stock in the wholesale market. Accordingly, dealers that are gaining top value for part-ex stock are those that have invested time to establish slick and efficient supply chains that move prepared stock to auction as soon as possible. Improving the quality of stock to get it up to auction standard is another KPI that successful dealers are adopting, as well as their acceptance of online bidding as a serious route to market. Our stats show that online sales have increased month on month by 20 per cent this year, and this is a channel that successful dealers are using.”
