Dealers are benefiting from higher prices at auction for part-exchanged vehicles, according to the latest data published by Manheim’s auctions.
It revealed that part-exchanged cars went under the hammer for an average of 3.9 per cent or £131 more during December last year compared to the final month of 2014. The positive figures showed that the average selling price is now just over £3,500 and vehicles are managing to increase their auction value despite the company handling a nine per cent increase in used car volumes.
When you are restocking your showroom or forecourt, whether through auctions or part-exchanges, keep tabs on the value of vehicles you currently have and make sure your motor trade insurance is adequate to cover them.
While the year on year figures from Manheim showed an increase, there was a dip in values compared to November. On a monthly basis, the auction value of the average vehicle was down by just over two per cent or £75. Manheim said this was mainly due to the age and mileage of the majority of cars going under the hammer, which were an average of two months older than those sold during November. Most also had more than 1,500 more miles on the clock.
However, values of MPVs increased month on month and sold for an average of 3.5 per cent or £147 more than in November.
The auction group said that the year on year values rose for eight out of 10 vehicle types, with executive cars leading the way with a 7.4 per cent increase, followed by 4x4s, which rose by an average of 6.7 per cent. The average age and mileage of cars auctioned in 2015 was comparable to 2014.
Manheim’s Daren Wiseman told Car Dealer magazine: “The fact that age and mileage profile is largely unchanged from 2014, but the average selling price is almost four per cent higher, demonstrates the quality of the stock and the buyer base that Manheim is able to attract.”