UK used car market holds-up well
ACCORDING to the latest Manheim Market Analysis report, the UK used car market is holding up well compared with the same period in 2005.
It suggests that higher volumes are coming to auction and prices are remaining relatively steady.
Tracking wholesale used car market trends for the past 27-months, with the focus on Quarter 2 of 2006 the report identified an increased emphasis on used car tradings as the new car market weakens.
Market volumes increased by almost 6% in Q2 2006 over Q1, which is in line with the seasonal trends, while, despite small drops in certain sectors, average prices in Q2 2006 remained fairly stable at £5,986. The average values are now £430 more than in Q2 last year and should be contrasted against a fall in values during that period of £320 which is £400 higher than the same time last year. This quarter's figures represents a 0.5% rise to 38.7% over Q1 2006 of the Original Cost New price, against a 3.3% drop this time last year .
Perhaps reflecting the fiercer competition on the forecourts, used values of dealer part-exchanges slipped by £153 to £2,392. However prices are still within £20 of the same period in 2005. In Q2 2006, average age and mileage fell by one month and 1% respectively to 86 months and 69,959 miles. The proportion of Original New Price fell 1% to 17%. Average stocking days increased one day to 5 days.
Average sale prices of nearly new cars saw a normal seasonal fall of almost 4% to £10,375 and a fall from 61% to 59% of Original Cost New. Average mileage increased by 1.9% to 17,479 miles, while average age increased one month to 15 months. Average stocking days fell to 11 days.