Manheim: prices fall, but de-fleet market stays positive

Despite decline in monthly vehicle values, de-fleet market remains strong.

Manheim Market Analysis reports that as prices of de-fleeted cars selling at auction fell in July, the age and mileage of vehicles rose slightly. Despite falling by an average of £377 (5.1 per cent) compared to wholesale prices achieved in June, the value of ex-lease and contract hire cars is still £371 higher (5.6 per cent) now than in July 2012.

The latest figures from Manheim show that July's decrease in value can be accredited to an increase in both the average age and mileage of the de-fleeted vehicles appearing at auctions. With the average age jumping by two months and the average mileage increasing by 710, to 50 months and 58,078 miles respectively, the prices achieved in the wholesale market were affected.

The average selling price of de-fleet vehicles fell for nine of the ten segments from June to July. Year-on-year, six of the 10 segments saw an increase in value, most markedly for the executive sector, which, despite the July blip, has seen values rise by £842 throughout the year.

Daren Wiseman, valuation services manager at Manheim Auctions, commented: "It's significant to note that auction prices in July reacted to an increase in age and mileage of vehicles, by falling back from £7,368 to £6,991. This shows that although there is generally still a shortage of wholesale stock coming to auction, the current market is perhaps more focused on selling rather than buying."