Cold Snap Warms up Fleet 4x4 Market
Defleeted 4x4s have seen their values skyrocket by more than £1,000, as the return of colder weather sparks interest in the winter-ready vehicles. Figures released by Manheim, the world’s leading vehicle remarketing organisation, reveal that although overall fleet sector values fell by just 1.4% over the past month, underlying performance in the sector remains strong.
While the average ex-fleet price at auction fell from £7,045 to £6,948 between October and November 2014, a handful of firm favourites saw their values increase throughout the month. Amongst the vehicles enjoying a rise of value were superminis (by £60), compact executive (by £242) and MPV models (by £233) during November.
The largest increase in average selling price was seen with 4x4s, which saw an increase in value of £1,188 month on month.
Daren Wiseman, valuation services manager at Manheim, said: “In spite of the overall defleet sector values drifting marginally in November, looking at these figures in the context of the year, they indicate a stable market for ex-fleet vehicles. While November’s average value at auction was £645 below that of 12 months ago, it’s important to understand that today’s cars under the hammer are on average seven months older and have more than 6,000 additional miles on the clock.
“We would typically expect values to fall at this time of year, so this slight drop during November is no surprise. However, demand remains high with buyers wanting to stock up ready for the post Christmas upsurge and taking advantage of the seasonal price drop. Some vendors can tend to stockpile their vehicles in the run-up to Christmas, waiting for better prices in the New Year. It is important to note that our experience shows that this strategy could be risky, as depreciation and the hidden cost of not selling a vehicle can be significant in terms of storage and tied up capital.”