Market Tracker - August
Dealers ‘cautiously optimistic’on economic conditions
The used vehicle market held steady in the traditionally quiet month of August, with stable demand in both the wholesale and retail market, according to the latest results from Cox Automotive.At Manheim, August saw a slight change in stock mix with a higher proportion of part-exchange vehicles, and an increase in average age and mileage MoM. As a result, the average vehicle price was down on July’s figure at £5,663.
Philip Nothard, Customer Insight and Strategy Director - Cars, said: “The MoM drop in average price at Manheim reflects a change in stock mix, rather than a downward pricing trend.”
“In fact, average values were stable in August, and the realignment of pricing guides that we’ve seen over the past two months stimulated demand in the wholesale market, generating strong conversion rates across the month.”
The change in stock mix came at an interesting time for the new car market, as the introduction of new legislation saw unseasonal levels of August registrations for the second year in a row. SMMT figures for August show a -1.6% YoY decline, but this represents a +21.1% increase when compared to August 2017.
When it comes to fuel, Manheim data shows that diesel values have taken the biggest dip YoY, down 17.8% when compared to last August.
In contrast, the average AFV value has been up YoY every month for the last six months, a sign of dealer and consumer interest in the vehicles.
Nothard commented: “Earlier this year we commented on the fact that low diesel sales in the new car market have started to impact volumes in the wholesale market.”
“The proportion of 1 – 3 year old diesel vehicles at auction is falling, and this will naturally affect the average price. That said, a used diesel is still the best choice for many consumers, and good condition diesel vehicles continue to sell well at auction.”