Used car values stay strong

According to Manheim Auctions’ latest Market Analysis report, average values increased 7.5 per cent in the first three months of the year to £6,643 despite the knock-on effect from the March plate-change pushing up used volumes to record levels. Manheim claimed this was the highest average selling price recorded since it introduced the quarterly analysis in 2004.
It said the original cost new price of used cars sold at auction also hit a new high of 42.7 per cent.
Manheim said the strong start to the year was more notable because the rise in values was set against “a very buoyant 2006 market which saw none of the traditional dip in used prices at the end of the year”.
Rob Barr, Manheim’s group communications director, said: “The used market was very strong last year against a weaker new car market and it continues to strengthen against improved new sales in Q1 2007.”

Average age of used cars
In the year to 31 March, the average age of cars Manheim sold fell to
38 months – one month down on
the last three months of 2006.
Average selling prices of cars supplied by dealers, traditionally far older than cars from other sectors, increased by 3.4 per cent (£84) to £2,528 in Q1. Age remained static at 87 months but mileage fell 200 miles to 70,958. The percentage of the original cost new price crept up 0.6 per cent to 17.9 per cent.
Stocking days were the same as the previous quarter at four days.
“The fact used car volumes are up underlines the confidence and dependency dealers have on used car retail activity,” said Barr.
The average selling price of late-plate models from carmakers rose 6.6 per cent to £12,000 despite a one month increase in age to 14 months. Mileage dropped for the third quarter in a row – down by 438 miles to 14,384 miles.
Manufacturer-supplied cars sold for an average of 64.7 per cent of their new cost – a 1.2 per cent rise. Stocking days fell from nine to eight days.

Company car miles fall
In the fleet/lease sector prices increased 4 per cent to £5,500, age fell two months to 42 months and mileage dropped for the fourth quarter in succession – by 1,157 miles to just under 57,000.
Percentage of original cost new price was up 1.3 per cent to 35.4 per cent and stocking days rose 3 days to 17 days.
According to Manheim the continued fall in mileage indicated company car drivers were covering fewer miles before replacing their cars due to environmental concerns and the government’s withdrawal of tax breaks.
“The government wants to drive down mileage,” a spokesman said.

Vehicle Segments
The average age of all vehicle segments sold at Manheim Auctions in the first quarter reduced with MPVs recording the sharpest fall of three months.
Mileage was down for all segments bar medium family models. Executive models recorded the largest decrease of 5,764 miles.
Average selling prices rose across the board with notable increases in superminis – up 12.5 per cent to £4,501, large family cars – up 8.1 per cent to £5,878 and executive models – up 8.4 per cent to £11,933.
Despite the backlash against 4x4s, values remained strong in Q1 with prices up 6.1 per cent to £11,514.