‘Significant’ June used fall
July 13th, 2010 by Richard Aucock
MANHEIM has reported average used car values fell by almost 5% in June 2010, with fleet cars leading the decline.
Fleet sector prices fell by 7 percent, with dealer part-exchanges only just behind on 6.5 percent.
Manufacturer stock helped stemmed the decline, with a lesser fall of 1.9 percent. Despite this, though, used car values are less than 1 percent (just £52) ahead of this time last year.
What’s causing it? Well, average mileage has now topped the 50,000 mark, reflecting extended use during the recession. Fleet cars are particularly affected here, suggesting fleets are being hit by decisions to extend leasing contracts.
Fleet compact executive mileages are up 7500, and average age has increased by 7 months.
Despite this, Manheim Remarketing MD Mike Pilkington was undaunted. ‘Given the unusually difficult trading conditions in June, a fall of this magnitude, significantly above the seasonal norm, is no surprise.
A whole series of short term factors, from the General Election through to the budget and World Cup, have made it harder to predict the underlying level of economic confidence and consumer demand.’
The cure for falling used car prices? ‘Unless there is a more positive outlook for consumer demand through the traditionally quiet period of the summer months, then only a reduction in vehicle supply is likely to ease the pressure on prices.’