Friday, September 19, 2014
PART-EX VALUES CONTINUE TO RISE PRE-PLATE CHANGE, SAYS MANHEIM
Latest figures from global vehicle remarketing business Manheim’s monthly Market Analysis show continued growth in values across ex-dealer stock, with all ten segments analysed showing increased selling prices year-on-year.
The overall value increase between August 2013 and August 2014 was £533 to £3,162, a growth of 20.3%. The month-on-month figure was a more conservative £32 (1%).
In line with the recent announcement from the SMMT highlighting the 30th consecutive month of growth in new car registrations, significant volumes of good quality part-ex vehicles have made their way into the market. This month’s plate change is likely to see even more attractive stock becoming available, allowing dealers to be selective in their purchases.
Daren Wiseman, valuation services manager at Manheim, comments: “The availability of cheap finance and increasing consumer confidence has led to record performance in the new car sector, which has been echoed in the used market. However, the attractiveness of new car deals has also placed price pressure on some of the lower spec, higher mileage part-ex vehicles.
“While September should be another record-breaking month for new car registrations, it is unlikely that these heady heights will be sustainable in the long-term and we expect the markets to realign and stabilise over the coming months. For dealers looking to shift part-ex stock, this means taking a realistic overview of the quality and volume of vehicles in the market to price stock accordingly.”
Looking at Manheim’s figures in more detail, in contrast to the expected summer lull, prices increased for seven of the ten segments between July and August, with compact executive and executive models showing the greatest growth (£239 and £415). Both of these segments also saw a month-on-month increase in mileage, of 2,946 and 2,085 respectively.
Wiseman comments: “While the relative low cost of borrowing money has allowed consumers to drive newer, more expensive vehicles than perhaps they would have looked at pre-recession, the looming interest rate rise and scrutiny of finance deals is likely to prompt realignment in the market over the coming months. We expect to continue to outperform 2013, but with prices falling more in line with expected seasonal norms.”
In line with the recent announcement from the SMMT highlighting the 30th consecutive month of growth in new car registrations, significant volumes of good quality part-ex vehicles have made their way into the market. This month’s plate change is likely to see even more attractive stock becoming available, allowing dealers to be selective in their purchases.
Daren Wiseman, valuation services manager at Manheim, comments: “The availability of cheap finance and increasing consumer confidence has led to record performance in the new car sector, which has been echoed in the used market. However, the attractiveness of new car deals has also placed price pressure on some of the lower spec, higher mileage part-ex vehicles.
“While September should be another record-breaking month for new car registrations, it is unlikely that these heady heights will be sustainable in the long-term and we expect the markets to realign and stabilise over the coming months. For dealers looking to shift part-ex stock, this means taking a realistic overview of the quality and volume of vehicles in the market to price stock accordingly.”
Looking at Manheim’s figures in more detail, in contrast to the expected summer lull, prices increased for seven of the ten segments between July and August, with compact executive and executive models showing the greatest growth (£239 and £415). Both of these segments also saw a month-on-month increase in mileage, of 2,946 and 2,085 respectively.
Wiseman comments: “While the relative low cost of borrowing money has allowed consumers to drive newer, more expensive vehicles than perhaps they would have looked at pre-recession, the looming interest rate rise and scrutiny of finance deals is likely to prompt realignment in the market over the coming months. We expect to continue to outperform 2013, but with prices falling more in line with expected seasonal norms.”
DATED: 19.09.2014
FEED: HA
