Small fall in wholesale used car prices

Manheim’s latest monthly Market Analysis reports that, at £5,905, the average wholesale used car selling price was 1.6% (£97) down in November compared with a 4.4% (£278) fall in October. The average selling price was 15.0% (£1,046) lower that in November 2007. Whilst further seasonal reductions in values would be expected at this time of year, it is encouraging to note the increase in values in the Fleet sector and relative stability in the Dealer sector.

In the Fleet sector average month-on-month values actually rose by 3.4% (£161) compared with a fall of 10.0% (£524) in October, while in the Dealer sector average month-on-month values fell by 4.3% (£76) compared with a fall of only 1.4% (£26) in the previous month. The Manufacturer sector saw a month-on-month decrease of 6.3% (£620) compared with a fall of 8.6% (£928) in October.

Examples of the changes in average wholesale used car selling prices in November include Small Hatchbacks in the Manufacturer sector which fell by 2.1% (£146) and Large Family vehicles in the Dealer sector which fell by 9.2% (£130). However, in the Fleet sector both Supermini and Medium Family vehicles rose by 3.7% (£111) and 2.7% (£119) respectively as did Soft Roader and Off Roader vehicles with increases of 2.8% (£152) and 5.7% (£570).

Commenting on the November report, Mike Pilkington, Managing Director, Manheim Auctions & Remarketing said: “Following the fall in average sales values in October and the gloomy economic outlook, the fall in average values of just 1.6% in November was less than expected. Although conversion rates are lower than previously recorded at this time of year, demand from buyers has remained strong and with the continued decline in new vehicle registrations, there is still evidence of dealers concentrating on profit opportunities through used vehicles.”