Part-exchange stock moving faster in July as values remain strong
The average value of dealer part-exchange stock sold through Manheim’s auctions in July increased very slightly by 0.4% (£15) compared to June, but was up by 9% (£281) year-on-year. Average days in stock fell by 12.5%, reflecting faster-moving sales.
Much of the growth in the used market came from smaller cars, with average values for small hatchbacks, which accounted for 26% of sold volumes, increasing by 2.3%. Compared to July 2014, supermini values were up by 13.6%.
While accounting for less overall volume, the executive and compact executive segments also performed well in July, with values rising 2.2% and 2.1% from June, respectively. Compared to the same month in 2014, values were up by 36.7% and 16.8%, for the respective segments. The former rise was mainly attributable to July 2015’s executive stock being an average of 7 months younger.
The average selling price of MPVs coming to the market through part-exchange increased by 5.1% in July from the previous month, and also rose 18.3% year-on-year. Although the MPV may be less popular with families than it once was, due to the rise in the compact SUV market, there are other markets where demand remains high, such as private hire – fuelled in a large part by Uber.
Once again, 8 out of 10 vehicle segments analysed by Manheim saw growth in average values from the previous month, with only supermini and medium family cars seeing a slight fall.
Compared to 2014, the only vehicles with a lower average selling price were large family cars.
Daren Wiseman, valuation services manager at Manheim, commented: “The demand for good quality part-exchange is keeping values strong. As we look ahead to the plate change month of September, we expect to see great stock available both in-lane and online, coming from dealer part-exchange as well as Manheim’s car buying companies, that will leave buyers with plenty of choice.”