Prices of de-fleeted cars at auction fell in April, as the age and mileage of vehicles rose slightly, according to Manheim’s latest monthly barometer of auction activity.
Despite falling by an average of £665 (8.5%) compared to prices achieved in March, the value of ex-lease and contract hire cars is still £280 higher (4.1%) now than in April 2013.
The latest figures from the Manheim market analysis show that the decrease in value in April can be put down to an increase in both the average age and mileage of the de-fleeted vehicles appearing at the auctions.
As the average age jumped by four months and the average mileage increasing by 3,192, to 55 months and 62,030 miles respectively, the prices achieved in the wholesale market were affected.
Daren Wiseman, valuation services manager at Manheim Auctions, said: "As predicted last month, the average selling price has softened slightly during April.
"The increase in average age and mileage has obviously played a part, however the most important factor throughout the month has been the considerable influx of stock coming to auction post plate change.
"There was an increase of more than 25% in the number of vehicles coming through the auction centres during April and this, coupled with the slight slowdown in retail demand throughout the month, has had an impact on values."
According to Manheim, the average selling price decreased across all of the sectors during April 2014. This was most noticeable for 4x4 models, which fell by £1,966 (or 13.2%).
This fall in values during April was partially reflective of an increase in the average mileage of 1,207, although the average age of 4x4 vehicles fell by one month, to 55 months. However, the year-on-year values have actually increased within the 4x4 sector by £535, which is reflective of a fall in average age from 57 months to 55 months and the average mileage fell from 65,121 to 60,342.
Wiseman added: "Although the average selling price for de-fleet vehicles has been affected by the increase in vehicles at auction, the Easter weekend and the bank holidays during the month, there is reason to remain optimistic as we head into May.
"The first week of the month has already seen an upturn in the average selling prices, although this has predominantly been caused by a reduction in the number of vehicles coming to auction.
"This volume decrease will inevitably see conversions improve and the selling prices should stabilise during May. I would therefore expect values to further improve as we move into the summer months."
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