Strength in the used car market

The latest figure from Manheim Auctions shows the underlying strength of the UK’s used car market. Despite recent gloomy reports of cars with unrealistically high reserve prices being held in stock for long periods, the Manheim report paints an entirely different, and according to the BVRLA’s own detailed information, a far more realistic picture.

“Days in stock is a crucial factor in Members’ disposal procedures,” says John Lewis, BVRLA Director General. “It is plainly critical to the disposal process that Members sell vehicles as quickly as possible and to aid that, they have to set realistic reserves.

“Given the latest set of numbers from Manheim, it appears that they are doing just that. Days in stock are down to just 15, and that of course, includes inspection plus reconditioning where necessary. The figure is now lower than in the same periods for both 2005 and 2006 by some 12% and that’s good news. It certainly gives the lie to previous reports.

“What is also good news is that these vehicles are achieving higher than ever prices. Manheim is reporting a record quarter one price achievement with the average value dropping by just £12 a unit for quarter two. As a percentage of cost the average 44 month old vehicle is retaining 35% of its original price. And this is despite an increase in the vehicle age from 42 months taking many vehicles over a further plate change although that is offset to an extent by a slight decrease in average mileage.

“What does this mean for customers? It means better than ever value from BVRLA Members for any full risk option such as contract hire.”