Auction prices rise again
08 June 2009
The two main auction companies Manheim and BCA have both reported a slight increase in used values in their auction halls last month.
Cars coming to auction from the fleet sector in May achieved a 2.3% or £140 rise to an average £6303 according to Manheim, while BCA reported a 2.0% rise to an average £7024, the first time since 2007 that its average has broken the £7000 mark and the seventh monthly rise in a row.
Commenting on the outlook a BCA spokesman said: "May has been a pleasant surprise, as all the signs were that the market was about to soften. However, with volumes down and demand holding up exceptionally well, we have recorded another increase in average value, month-on-month.
"Despite the market now heading into what is traditionally the quietest time of the year, signs suggest that average prices will be maintained at this higher level - at least while supplies of vehicles are relatively thin in the wholesale market."
Manheim reported good growth for the core fleet supermini, lower medium and upper medium sectors. Superminis were up 4.5%/£198 to an average £4546, lower medium models were up 7.0%/£374 to £5728 and upper medium cars jumped 9.1%/£437 to £5239.
There was more residual value good news from values expert Cap. The June issue of its Black Book guide to trade values saw small RV rises on most sectors of the market. Overall, 10,000-mile 12-month old cars were awarded a predicted jump of 0.4%, three-year 60,000-mile models remain static and five-year 80,000-mile vehicles are up 0.3%.
The only sectors given a predicted residual value fall were one- and three-year old city cars, all ages of supermini, three- and five-year old lower medium models and upper medium cars of three years old.