According to research from the National Association of Motor Auctions (NAMA), average auction prices of ex-fleet vehicles (i.e. ex-lease cars) rose by 2% between August 2013 and September 2013. Based on ex-fleet vehicles aged between 2.6 and 4.5 years old, the average price was £8,250.00 per vehicle according to the statistics.
As part of the statistics, it was also revealed that premium 4×4 SUV vehicles and 4×4 lifestyle cars are continuing to increase in price in the run-up to winter. Because of the harsh weather conditions which the UK seems to have become accustomed to, demand for 4×4’s is on the increase and this is very much reflected in values. For example, average prices for a premium 4×4 have shot up from £19,000 in July to £21,000 in September. In contrast, convertible vehicles have seen a healthy reduction in value.
Commenting on these statistics Paul Hill, Regional Director of Manheim, said that the continuing retail demands have created good news for auctions, while de-fleeting is now in full-flow once again.
There has undoubtedly been a shortage of good used-cars available through the auctions, some of which has been caused by the reduction in de-fleeting and ex-lease cars being made available. Some of this can be attributed to the fact that many company cars have been extended, rather than replaced, due to financial and economic uncertainties. As business confidence increases, fleets are more receptive to changing vehicles; this brings a fresh influx of new vehicles. That being said, even with increasing supply, prices continue to rise which is perhaps not only reflection of an increasing demand for cars but also an increase in the healthiness of our economy.