Used car prices continue to fall

Manheim’s latest monthly Market Analysis reports that, at £5,720, the average wholesale used car selling price was 3.1% (£185) down in December compared with a 1.6% (£97) fall in November. The average selling price was 14.5% (£969) lower than in December 2007.

In the Fleet sector average month-on-month values fell by 3.1% (£149) compared with a rise of 3.4% (£161) in November, while in the Dealer sector average month-on-month values fell by 4.9% (£82) compared with a fall of 4.3% (£76) in the previous month. The Manufacturer sector saw a month-on-month decrease of 5.0% (£465) compared with a fall of 6.3% (£620) in November.

Although overall average wholesale values continued to fall in December there were several examples of increases in specific segments compared with November. In the Fleet sector the Supermini, Compact Executive, Executive and Mini-MPV segments recorded increases of 1.0% (£32), 3.3% (£206), 7.2% (£589) and 1.6% (£63) respectively. Meanwhile in the Dealer sector the Executive, MPV and Large Coupe sectors also recorded increases of 3.4% (£71), 2.2% (£42) and 19.2% (£821) respectively.

Examples of decreases in average wholesale used car selling prices in December compared with November include the Soft-Roader and Large Family segments in the Fleet sector which fell by 7.7% (£436) and 6.5% (£250) respectively. In the Dealer sector the Small Coupe segment fell by 16.8% (£390) and the Off Roader segment fell by 13.9% (£440).

Commenting on the December report, Mike Pilkington, Managing Director, Manheim Auctions & Remarketing said: “Although average wholesale values continued to fall in December there were several examples of increases which suggests that if a vehicle is in demand and the price is right it will sell. As far as 2009 is concerned the year has started well with full auction halls, strong prices and high conversion rates. However, this quarter is traditionally strong so we must still be cautious in assessing any long-term recovery in prices”.