Friday, September 19, 2014
Part exchange used stock values 20% higher than a year ago
The value of ex-dealer stock being sold at auction was 20.3% higher in August than a year ago, according to Manheim figures.
Buoyant new car sales has seen significant volumes of good quality part-ex vehicles reaching the used car market and this trend is set to accelerate in September.
Daren Wiseman, valuation services manager at Manheim, welcomed the increase in quality but warned that the attractiveness of new car deals has 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.”
Wiseman said vendors needed to be realistic in the prices they are asking for poor stock
“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,” he said.
DATED: 19.09.2014
FEED: MT
