Used car prices rise in December wholesale and retail markets
Figures from Manheim and Motors.co.uk show that used car prices rose in the wholesale and retail markets in December, providing a strong finish to 2016.
The average retail selling price seen on Motors.co.uk rose by 4.5% from November to £13,275 – the highest value ever recorded – and was up 16.6% year-on-year, reflecting a robust consumer market.
In the wholesale market, Manheim recorded an average selling price for used cars of £5,871, which was 4.0% up from the previous month and replicated an uplift seen in December 2015. Average mileage was 61,167, the lowest figure ever recorded by Manheim, and was down by 3.5% from the same month last year.
In the ex-fleet market, the average selling price rose by 2.6% to £9,121, with ex-fleet cars recording their lowest average mileage for six months. The sold values and for part-exchange cars remained stable month-on-month at £3,702.
Both retail and wholesale volumes were down month-on-month, with a slight increase in days in stock in both markets. Prestige vehicles were the strongest performers, with prices up 1.8% in the retail market, to £20,104, and values seen at Manheim’s auctions rose by 7.3% from November, to £10,985.
Used diesel car prices increased month-on-month in the wholesale and retail markets by 4.0% and 2.2%, respectively. At auction, diesel car values were 3.4% down from the same month in 2015. Petrol car prices were up by 3.6% in the retail market and by 1.6% in the wholesale sector – and were also above their 2015 level in both markets.
On Motors.co.uk, the average selling price of electric cars was up 2% from November and relatively stable compared to 2015. However, retail days in stock have been consistently falling over the past 12-18 months, indicating a growing consumer demand for plug-in vehicles. Hybrid cars also saw prices rise both month-on-month and year-on-year.
Dermot Kelleher, Director of Marketing and Business Intelligence at Motors.co.uk, said:
Our dealer customers enjoyed a strong end to the year, supported by our fast, new mobile-first website, which launched in December and immediately helped boost leads from UK car buyers.
Daren Wiseman, Head of Valuations at Cox Automotive UK, said: “Dealers were out in force in December, and while we saw an expected drop in auction volumes, they were paying top money for the stock they wanted in the run-up to Christmas – some of which was being sold rather than held over the holidays. We expect to see a strong start to the year in the wholesale market, which appears to be in rude health.”