Used car prices rise

The major auction houses have reported that, for the first time in several months, used car values have increased. 

However, they warn that it is too early to draw any conclusions from the good news.

Manheim found that, at £6,280, the average wholesale used car selling price was 3.5% (£212) up last month compared with August.

This rise compares with a 1.7% (£103) fall in August.

However, BCA’s results were lower.

Its sales data for September showed that average monthly used car values rose, with a modest climb of £47 (1%) recorded against August.

Values averaged £4,812 over the month, compared to £4,765 in August.

Manheim also found that the fleet sector average month-on-month values rose by 4.1% (£208) compared with a fall of 2.1% (£106) in August.

While BCA’s figures show that values for fleet and lease cars rose by £71 in September compared to August.

However, September is traditionally one of the strongest months for average values and year-on-year values remained well behind 2007.

Not only did values rise, but Manheim also saw an increase in used cars being entered for sale - the first increase in volumes for five months.

Mike Pilkington, managing director, Manheim Auctions and Remarketing said: “Following the relative stability of August it is encouraging to see price rises in September.

“However, with the new car market 21% down and continued macro-economic uncertainty, it would be wrong to draw too many conclusions as to the future.”

BCA’s Tony Gannon added: “September’s average values offered some relief for vendors as prices crept up, even if only marginally.

“While it would be foolhardy to suggest this heralds a recovery for used market prices, it was a welcome change from what we have seen in recent months.”

There was also an improvement against guide values as the average performance against CAP Clean rose to nearly 92% after spending two months stabilised around the 90% mark.

Martin Keighley, HPI Valuations Expert, believes tough decisions are called for to ensure the early shoots of recovery take hold.

“Overall things are bleak, but as we approach Christmas it is hoped values will level out as the rate of fall begins to slow,” he said.

This entry was posted on Monday, November 3rd, 2008 at 9:13 pm and is filed under Other News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.