Average selling price of ex-fleet vehicles reaches yearly high

The average selling price of ex-fleet vehicles reached a yearly high of £7,368, according to Manheim’s market analysis report for June 2013.

This is a dramatic increase in the year-on-year value, which rose by £669, or 10%, for the period June 2012 to June 2013.

The average value of used cars from the fleet sector rose by £530 during June 2013, which is reflective of a fall of four months in the average age and a fall in average mileage of 1,637 miles.

When looking at the broader year-on-year figures, the high selling price achieved in June can be attributed to the lowest figures for the year to date in both age, a fall of 48 months, and mileage, a drop of 57,638, of the vehicles at auction.  

Looking at the figures in more detail, the average selling price increased for nine of the 10 sectors during June 2013.

This was most noticeable with executive models, which rose by £1,197 and compact executive models which increased by £1,066.

This is reflective of the fact that the sectors saw decreases in both average age and mileage, with executives falling by four months in age and 3,958 in miles and compact executives falling by five months and 3,599 miles.

The only fall in values was recorded by 4x4 models, which fell by £890 in June, despite there being no change in the average age, but an increase in average mileage of 689 miles. 

Daren Wiseman, valuation services manager at Manheim Auctions, commented: “The headline figure of £7,368 has been strengthened by a reduction in age and mileage of cars coming to auction.

"It is also really interesting to see that the average age of de-fleeted vehicles has returned to 48 months for the first time since August 2011.

"Over the three years prior to this we saw ages fluctuate between 36 and 48 months, which is the traditional cycle for vehicles.

"However, since then the number has edged upwards.

"It will be interesting to see over the coming months if this return to the traditional age is a sign that business confidence is returning to UK Plc and, as such, the fleet and leasing cycle is returning to normal.”