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The average value for part-exchange stock sold at auction increased year on year in May by £346 or 12.7% to £3,077, according to the latest Manheim Market Analysis. Month on month values rose by £61 or 2%.
Year on year data shows how average mileages decreased by 511 miles between, while the month-on-month results showed an increase of 1,021 miles. Vehicle age remained consisted at 101 months.
Daren Wiseman, valuation services manager at Manheim Auctions, said the trends reflected the boom in dealer finance sales which has prompted many motorists to trade-in their vehicles this year.
“The record-breaking new car figures around the plate-change in March have been followed by strong used car progress as well. This has led to an increase in quality product in the wholesale market, providing buyers with far more choice, especially when it comes to the newer, low mileage stock.
“There is a danger of a build-up of unsold stock should such strong growth continue; however, with a softening in values and stabilisation in retail demand, it is likely that the market will return to its seasonal norms over the coming months.”
The average selling price for five of the ten market segments analysed by Manheim rose between April and May. This was most notable for MPV models, which increased by £472 or 15.6% (to £3,499). The average age for this segment fell by five months while the average mileage saw a drop of 7,883 miles. The MPV segment also saw a rise in value year-on-year, increasing by £844 or 31.8%, which is reflective of a fall in mileage of 7,841 miles and a drop in age by three months.