Used car prices rise at auction, while retail market softens in August
Monthly figures from Cox Automotive brands Manheim and Motors.co.uk show that while wholesale used car average selling prices rose in August, retail prices softened slightly in the run-up to the plate change period.
The wholesale average selling price observed in Manheim’s physical and online auctions rose 3.0% to £5,779 from July, while the average price of cars sold by dealers on Motors.co.uk decreased by 2.9% to £12,110.
The average selling prices of ex-fleet cars at Manheim in August rose by 2.1% (£202) to £10,024 and the values for part-exchange stock also increased by 2.1% (£74) to £3,603. The average mileage of cars sold by Manheim continued to fall, dropping to an average of 61,580 miles on the clock.
In the wholesale market, convertible values mostly held firm, rising by just 0.6%, but decreased by 7.2% in the retail market. Days in stock at auction also increased by one day, indicating a potential tipping point in demand. Conversely, the value of SUVs in the wholesale market was up by 3.3% from July, with a reduction of one day in terms of days in stock.
In the retail market, Motors.co.uk data showed that diesel cars were the fastest selling cars for dealers, recording an average of 37.2 days in stock. Petrol cars were close behind at 38.5 days in stock, and hybrid cars took 44.5 days to get off the forecourt. Car buyers are taking more time when considering an electric car purchase, with the average plug-in model taking 65.8 days to sell.
At Manheim, petrol cars were the quickest to sell, with an average figure of 9.5 days in stock, compared to 15 days in stock for diesel models. Manheim continues to engage with and educate its trade buyers around the benefits of stocking plug-in vehicles, and electric cars recorded an average of 25.1 days in stock.
In the wholesale market, luxury brands sold fastest, in 10.1 days, with prestige marques recording 10.3 days in stock. Volume models took longer to sell at 15.7 days. Average selling prices rose for all types of car, including a 1.0% (£43) increase for volume brands and a 4.2% (£457) rise for prestige brands.