Manheim reports used car market bounce back

Manheim’s latest Market Analysis report shows a continued recovery in wholesale used car prices for February, following the very strong start to the market in January. This uplift in used car values in the first two months of 2009 has wiped out the downturn in wholesale prices seen in the last six months of 2008.

With average used car values in February now at £6,294 and the percentage of Cost New retained at 34%, these are now comparable with the market back in June last year. Average age and mileages have remained largely the same at 48 months and 47,000 miles.

All sectors have risen in February with the younger cars from Manufacturers up by 12.9% to £11,553, ex-fleet vehicles up by 8.6% to £5,545 and the lower value part-exchanges from retail dealers up by 7.6% to £1,779.

Commenting on the latest Market Analysis, Mike Pilkington, Managing Director, Manheim Auctions & Remarketing said, “The continuation of this significant surge in demand in both the wholesale and retail markets and the extent of the resulting price recovery have certainly surprised most of us. However, it does show that when the motor trade is under serious financial pressure further investment in used car retailing is an excellent way of combating falling profits. Despite the recent price increases, used cars on the forecourts are still really good value and the consumer can clearly see this.”

This latest Market Analysis report has been extended to include all vehicles sold through Manheim’s direct sales channel, vrs, which means that it now includes the most comprehensive analysis of the late plate vehicles in the market.