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THE UK’s two largest auction houses have clashed over how much used car values declined
in 2008.
While Manheim’s full year market report indicated average wholesale values of used cars reached a peak in February and then fell throughout 2008 BCA’s Pulse reported a rise in November and December.
BCA communications direction Tony Gannon said: “Used cars currently represent exceptional value for money and the fact that values have stabilised in recent months is encouraging, particularly in view of large falls we experienced earlier in the year.”
In contrast, Manheim said December’s overall average sale prices were down 3.1 per cent on November.
Manheim’s report said average wholesale values of used cars dropped by 21 per cent over 2008.
While BCA’s report was relatively upbeat, the auction house did not forecast a significantly brighter future in the short term.
A BCA spokesperson said: “Until motorists find it easier to raise finance and some confidence returns to the consumer marketplace, there is nothing to suggest that used car values are going to climb in the short term – but even so 2009 should not see a repeat of the price patterns experienced in 2008.”
Managing director of Manheim auctions and remarketing Mike Pilkington agreed, saying low prices will stay. “We must recognise that prices are likely to remain at the current low levels for some time to come.
“The market is extremely fragile presently and needs a sustained period of stability before we will see any material signs of recovery.”
Cap, meanwhile, reported that values started to fall in Q2 of 2008, continuing downward for the remainder of the year.
A Cap spokesman said: “The market was weakest during the period June to October, with some respite in September attributable to a slight increase
in activity connected with the
new plate.”
He said that the decline was less steep from November, but overall for 2008 – when the impact of new plates, new models and heavy facelifts was factored out – used car values fell during every month.
? December auction news on p9