Strong market for car de-fleeting with average selling prices up

THE average selling price for de-fleeted vehicles is up more than 12% on 12 months ago although month-on-month figures show a slight decline, according to the latest data from auction giant Manheim.

 

That is despite an increase in both average age and mileage of vehicles, at three months and 162 miles respectively.

 

The average price for ex-fleet vehicles sold last month was £6,620, up from £5,905 in July last year, but fractionally down on June 2012’s average figure of £6,699.

 

Looking at the figures for July in more detail, the average selling price of ex-company cars rose for half of the 10 vehicle segments considered, most notably for 4×4 vehicles, which lifted more than 16% despite a rise in average age and mileage. That, said Manheim, could potentially be down to an increase in the volume of large 4x4s in the basket.

 

Compact executive models also saw an increase of almost 6% despite a rise in average mileage.

 

In contrast, Mini MPV vehicles saw the largest fall at just over 11%, although that followed a rise of 10% in June so was less dramatic than it first seemed and was reflective of a significant average mileage increase of more than 10,000 miles.

 

Year-on-year, nine of the ten segments showed an increase in value, with only the mini MPV lagging behind.

 

Daren Wiseman, valuation services manager at Manheim Auctions, said: ‘Although the market for de-fleeting is facing the inevitable effects of the summer, things have not been as gloomy as first predicted.

 

‘The positive sentiment of the Jubilee, Euro Championships and Olympic Games seems to have echoed through the used car market, with volumes recovering and values looking far healthier than this time last year.

 

‘While there is still a deal of uncertainty in the marketplace, the fleet sector is looking more buoyant than we might have expected six months ago. It will be interesting to see how the latter portion of 2012 compares with the first half, as the first half of 2012 has looked far more positive for fleet managers looking to dispose of stock than the latter part of 2011, with percentage of new price retained also higher than the last six months of the previous year.’


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