Used car values up in May

Used car values up in May across wholesale and retail markets

Cox Automotive’s wholesale and retail brands saw a year-on-year increase in sold volumes in May, with selling prices up across wholesale and retail markets.

In May, Manheim recorded an average selling price for used cars in its auctions of £5,904, showing a 10.9% increase from May 2016. Sold volumes were up by 11.3%, and the average mileage of cars sold by Manheim fell once again, this time by 7.3% to 60,245 miles.

Wholesale values for Cox Automotive

In the ex-fleet market, Manheim saw sold volumes increase by over a third year-on-year, and by over a quarter from April. Following the slight decrease seen in April, the average selling price rose by 4.5% year-on-year to £9,624.

There was little change in the part-exchange market, with sold volumes remaining stable, with a year-on-year increase of just 0.9%, and average mileage dropping 2.1% to 74,652. Average selling prices were up 2.8% compared to May 2016 and were fairly flat month-on-month at £3,647, a 0.5% increase from April.

May saw a 14.4% year-on-year increase in sold volumes for diesel cars in Manheim’s auctions, accompanied by a 7% rise in average selling price. For petrol cars, there was an 8.5% increase in sold volumes, while average selling prices climbed more steeply by 15.1% year-on-year.

Online trade-to-trade auction platform, Dealer Auction, saw a 3.5% increase in sold volumes compared to April, with average selling prices rising slightly by 0.5% to £4,082.

Wholesale funding provider, NextGear Capital, saw a 13.1% increase from April in units funded, alongside a 3.7% fall in average cost per unit, with an average vehicle value of £6,444. NextGear Capital boosted its overall stock funding facilities to dealers in May, rising by 4.1% to over £148 million.

In the retail market, saw a 5.8% year-on-year increase in average selling price, with the average value climbing to £13,408 this month.

Daren Wiseman, Head of Valuations at Cox Automotive UK, said: “We saw strong selling prices in the wholesale and retail markets last month. From a Manheim perspective, this was driven by a shift in stock profile, with a higher proportion of higher value, ex-fleet cars sold in May. With continuing focus on diesel, the strength in demand shown for diesel cars in the wholesale market is an important observation for the market.

“Although we saw prices rise in May, some vendors were not adjusting reserves in line with the market. We continued to see high stock levels across the auction network last month, which meant that it was largely a buyer’s market.”