Manheim Remarketing’s latest Market Analysis for Cars reports that average wholesale values in the Fleet sector have fallen slightly in May by 0.6% (£39) to £6,609 following a fall of 1.5% in April.

Changes in the mix of Fleet vehicles also mean that the scale of the fall in values is perhaps understated as values fell in six of the ten segments.

Overall values actually increased by 0.6% (£43) to £7,324 with Dealer part exchange values rising by 3.0% (£68) to £2,313 and Manufacturer stock up by 1.6% (£201) to £12,904. The overall increase in values was influenced to a large extent by the model mix in the Manufacturer sector where there was an increase in the proportion of Compact Executive and Executive vehicles. Values in six of the ten vehicle segments within the Manufacturer sector actually fell.

Overall average used car values are still nearly 9% ahead of the same period last year. Average age is up by four months compared to May 2009 at 50 months and average mileage is higher by 3,015 miles at 49,777 miles reflecting extended use during the recession. The continuing stronger position in 2010 over 2009 is still evident across all sectors with Fleet values ahead of May 2009 by 3.1%, Dealer up by 14.8% and Manufacturer up by 12.4%.

Mike Pilkington, managing director, Manheim Remarketing said: “The decrease in Fleet values was much less than expected given the significant fall in conversion rates during May. However, the reduction in demand will inevitably result in lower prices and vendors need to react to the realities of the present marketplace. The increase in Manufacturer sector values was an anomaly arising from changes in mix whilst the strength of values for Dealer part exchanges indicates that demand has been maintained in the sector where traditionally values are the last to be impacted by any market changes.”