Stability in wholesale and retail car markets in November
The wholesale and retail car markets in November showed signs of strength, despite some expected seasonality, according to Manheim and Motors.co.uk.
The average selling price of cars listed on Motors.co.uk was stable at £12,698, just 0.1% down from October. Compared to the same month in 2015, the average selling price was up 12.2%, underlining the quality of the stock available to car buyers on Motors.co.uk.
In the wholesale market, Manheim saw overall average selling prices dip by 4.5% to £5,644, with the average part-exchange car selling for £3,702 and the average ex-fleet car achieving a hammer price of £8,891.
Conversion rates were strong, with the average ex-fleet car taking one day less to sell (13.5 days), with the same increase in speed of sale seen across the entire wholesale car market, with the average car recording just 9.4 days in stock.
Some expected softening was seen in the run up to year end, with some buyers running down their stock levels for Christmas, with average part-exchange car selling prices falling by 3.7% month-on-month – although they were 1.6% higher than November 2015.
Manheim’s ex-fleet car auctions saw significant increases in volume in November, with 11.3% more cars selling in-lane and online. The increase in supply and seasonal factors contributed to a 10.4% drop in average selling prices compared to October, reflecting a similar decrease in 2015.
While consumer demand for SUVs is still fairly restrained, with average selling prices holding firm on Motors.co.uk, dealers seem keen to stock up for when wintry conditions do arrive, with the average selling price of SUVs at Manheim’s auctions rising by 4.5% month-on-month, with younger, lower-mileage ex-fleet SUVs on average selling for 8.1% more than in October.
Manheim saw record low average mileage of 61,916 for its car auction sales, with the average part-exchange car having done 75,514 miles and the average ex-fleet car having 39,980 miles on the odometer.