Auction companies report used car price drop
18 December 2012
Author: Jack Carfrae
Values of used fleet stock may have reached their peak and potentially be tailing off after months of seemingly unstoppable rises, according to remarketing experts.
Auction house Manheim reported a drop in prices for de-fleeted cars in November, along with a slight rise in age and mileage, although it put much of this down to a late but seasonal pre-Christmas downturn.
Chief strategy officer Mike Pilkington said: "Prices in November did react to an increase in age and mileages of cars by falling back from £6981 to £6413.
This shows that although there is still generally a shortage of wholesale stock coming through, buyers are perhaps more focused on selling than buying at the moment."
Pilkington's sentiments were echoed by SMA Vehicle Remarketing. Director, Eddie Thomson said: "An increase in stock through remarketing channels is welcome because demand has been outstripping supply across our group and I'm sure many others.
"However, this stock may come into market at the very time when used car activity is at a seasonal low and just when levels of new car support mean that private car buyers, who until recently were focused upon a used car, may now switch to buying a new model.
"Trade buyers are aware of this. Therefore, we expect the twin forces to create a small correction in used car values."
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