Aston Barclay reports tricky quarter for used car values
31 July 2019
Author: Sean Keywood
Used car values were down for three consecutive months during the second quarter of 2019, according to auction firm Aston Barclay.
It says factors including Brexit apathy, a rise in part exchange volume from the March plate-change, and more fleet stock making its way into the market were some of the reasons for the decline.
The average price of ex-fleet stock fell by £288 to £9,233 between the first and second quarters of the year, with average mileage down by 2,776 miles to 51,245 miles.
Aston Barclay says ex-fleet replacement cycles remain at 42 months, which challenges fleets because used value guides continue to define a typical fleet car as being three years and 60,000 miles. It says this can leave a disparity between written down values and actual auction values.
Dealer part exchange prices were also down across the board, while the late and low sector was the only one to see prices rise, up from £14,243 to £14,344.
Aston Barclay group managing director Martin Potter said: "Q2 was the first quarter for some time where the used car market was quite unsettled.
"We have been working with our dealer, fleet and OEM customers to understand how best to work in these changing market conditions.
"This includes setting accurate reserves to increase first time sale rates."
Despite the turbulent Q2 picture, Potter added that the third quarter of the year was so far looking more stable.
He said: "Q3 has settled down with increased conversion rates as vendors and buyers come to terms with the changing market.
"As we head towards August there are no indications of pre-reg activity due to the introduction of WLTP2, but we are watching this space for Q4 and into 2020 as manufacturers make decisions about these new regulatory fiscal penalties."