The average sale price for part exchanged cars sold in October increased by 5.2 per cent year-on-year, despite total values rising by 33 per cent compared to 12 months ago, according to Manheim.
Figures revealed that the values of part-exchange cars dropped 1.8 per cent from September to October, but still recorded the second highest monthly figure for the year to date.
An increase in part-exchange values is good news for many car dealerships, which regularly offer part-exchange as an option to customers. And naturally, whenever the value of vehicles fluctuates, it is always worth dealers checking that their motor trade insurance policies offer sufficient cover for the total value of the cars it stores on its premises.
According to Manheim, superminis and MPVs have seen the largest increase in value, with the average used supermini value rising by 9.7 per cent compared to October 2014 and MPV value increasing by 18.3 per cent in the same period.
Compact executive car and 4x4 values have also increased, rising by 9.7 per cent and 12.2 per cent respectively between September and October.
Daren Wiseman, Manheim’s valuation services manager, added: "In terms of their residual value, 4x4s maintained their September performance, retaining 27 per cent of their original value – the highest of any vehicle segment – continuing the trend of dealers snapping up available stock in the run up to the winter months."