Demand for fuel efficient vehicles remains steady

Manheim’s latest monthly Market Analysis report shows that demand for fuel efficient vehicles has remained steady even though the slowdown reported in the UK wholesale used car market in May has continued into June. At £6,584 the average price for all cars sold was £184 (-2.7%) down compared with May but just £61 (-0.9%) down compared with June 2007.

While the hardening of the market reported in May has continued into June due to the economic uncertainty, average price movements were not consistent across all market segments or all sectors. The increase in average selling price within the fuel efficient Supermini segment in June, up £140 (+4.2%) compared with the previous month and by £106 (+3.1%) compared with June 2007, indicates that demand for these vehicles is steady.

However in the 4x4 segments both ‘soft roader’ vehicles and larger ‘off road’ vehicles experienced reductions in average prices compared with the previous month of 7.0% and 13.9% respectively.

In the Fleet sector the values fell by just £83 (-1.5%) and in the Manufacturer sector values rose by £270 (+2.5%). Meanwhile the Dealer sector more closely reflected traditional seasonal trends with values falling by £89 (-4.5%).

Commenting on the June report, Mike Pilkington, Managing Director, Manheim Auctions & Remarketing said: “The tougher market for wholesale used cars first reported in May looks set to continue for some time yet but we are encouraged by the fact that the conditions do not seem to be affecting all market segments or all sectors. We mustn’t forget that whatever the economic situation may be over the next couple of months we could also see the traditional seasonal trends having an influence on market activity and values.”