Manheim reports rising prices for fleet vehicles
12 December 2019
Author: Sean Keywood
The average price of used fleet vehicles rose by 4.2% in November, according to auction firm Manheim.
The company says this increase, to an average sale price of £10,687, can be attributed to the average age and mileage of vehicles sold both falling by nearly 9%, as well as strong buyer demand.
The number of fleet vehicles sold during the month was up by 6.7% year-on-year, but down by 4% month-on-month.
Philip Nothard, customer insight and strategy director for Manheim's parent company Cox Automotive, said: "Stock has been in strong demand over the last few months and prices have remained high as a result.
"October saw the highest volume seen all year at Manheim, but the number of vehicles in the wholesale market tends to reduce as we come to the end of the year.
"Usually we'd expect demand to slow down in line with supply, but this year competition for good quality vehicles has remained fierce throughout November."
Manheim's November data also revealed an increase in the number of damaged vehicles coming up for sale.
Nothard said: "With such high demand in the wholesale market it's tempting for fleets to reduce their focus on reconditioning, but it's also worth noting that ready-to-retail vehicles attract the fiercest competition.
"Our data shows that taking a vehicle from Grade 3 to Grade 1 increases the margin by an average £470, so it's worth considering, even when demand is strong."
Looking ahead, Nothard is hopeful that fleet volumes in the wholesale market will continue to grow in 2020.
He said: "Supply issues and taxation confusion have caused many drivers to stay in their existing vehicles for longer.
"As these challenges fade away, we're starting to see more new fleet registrations, and a gradual rise in fleet stock across the wholesale market.
"There are a lot of unknowns in the UK at present which make predictions challenging, but assuming new car supply and taxation clarity are not affected by the new government this trend looks set to continue in 2020."