Values in the fleet sector rose to a record high in January, coinciding with a drop in the average age and mileage of vehicles, according to Manheim’s latest monthly barometer of activity. The New Year has seen ex-fleet prices rise to £7,824, an increase of £1,029 compared with December 2013 and a rise of £1,072 (or 15.9%) year-on-year.
The latest data from Manheim’s monthly Market Analysis shows that the increase in value is reflective of a drop in age, falling from 52 months in December 2013 to the current figure of 47 months. In addition to the decline in age, average mileages also decreased by 2,939 to 57,023.
Looking at the performance of vehicles that went under the hammer in more detail, January saw selling prices rise in nine of the 10 sectors covered in the report. Most notably, the average selling price of coupe models increased by £2,887 (or 15.9%) during the month, which is partially due to a decrease in the average age from 57 to 53 months. However, the average mileage increase of 8,748, to 56,603 miles, failed to have a negative effect on values. In contrast, the average selling price fell for MPV models by £1,349, to £7,292, which is reflective of an increase of six months in average age and of 10,189 miles, to 54 months and 69,832 miles respectively.
Daren Wiseman, valuation services manager at Manheim, commented: “January’s monthly report on the wholesale vehicle sector shows a market that remains buoyant. The automotive sector continues to provide positive news for the UK market, with new vehicle registrations reaching their highest peak since pre-recession and UK car production now at a six-year high. However, it is likely that many of these vehicles are not going to appear in the used market for another 12 to 18 months, which means that 2014 is likely to continue in much the same vein as 2013 when it comes to supply.
“Due to this general trend towards a shortage of good quality vehicles within the wholesale market, values have generally been on a positive curve for the past 12 months. Average selling prices have risen from £6,752 in January 2013 to the current figure of £7,824, and the market shows no sign of reversing this trend in the near future.”