Ex-fleet car used values strengthen

Prices of de-fleeted cars at auction rose again for the third month in a row in February according to Manheim’s latest monthly barometer of activity.

The average price of ex-fleet vehicles has continued to rise from £6,413 in November 2012 to £6,821 in February 2013, an increase of £408.

In fact, the rise in the average selling price mirrors a similar trend seen at the beginning of 2012 within the wholesale vehicle sector.

While February 2012 signalled a continuing rise in average selling prices, twelve months on we are seeing a similar trend. According to Manheim’s latest data, year-on-year retained retail value has risen by eight per cent, which equates to an increase in selling price of £551 over the year.

Manheim’s unique monthly measure, comparing today’s action prices as a percentage of their original retail price, also shows that fleet vehicles are retaining more of their value than ever before.

Average retained values of ex-fleet vehicles reached an all-time high of 36% of their new price in February. Such an increase reflects the rise in selling values and the dip in the average mileage by 5%, dropping from 61,822 to 58,707 miles from January to February. 

Daren Wiseman, valuation services manager at Manheim, said: "The retained retail values of ex-fleet stock going to auction had remained strong over the past twelve months, with values increasing by two per cent from 34% in January 2013.

"This jump is, in part, due to the chronic shortage of wholesale stock, but also reflects the rise in selling prices and the recent dip in average mileages. A retained value figure is considered by many as a more valuable measure of a vehicle’s worth, as this figure clearly demonstrates vehicle deprecation as opposed to market averages.”    

February saw selling prices rise in seven of the 10 niches covered in the report. Most significantly, 4x4 models increased by £1,334 or 10.3% and coupe models by £958 or 9% during the month. The largest fall in values was recorded by executive models decreasing by £579 or 4.7% during the month.