Younger ex-fleet stock commanding higher prices
Values in the fleet sector softened somewhat across May 2015, but remain more robust than those in 2014. The figures were released as part of Manheim's monthly Market Analysis, a comprehensive look at the state of the fleet market, and reveal that the average de-fleeted vehicle was worth in £7,158 in May. This was £360 (or 4.7%) lower than April's average, but a marked upturn when looking at the same figure from the comparable month of 2014.
The appreciation of value year-on-year could be attributed to a number of factors. Firstly, de-fleeted units in 2015 are markedly younger than similar stock in 2014. In May of this year, the average ex-fleet vehicle was 51 months old – four months younger than the average unit in 2014. And a comparison with the age of stock from May 2014 to now reveals a direct correlation between maturity and value.
When de-fleeted vehicles were at their oldest (54 months in October 2014), a corresponding dip in value was witnessed. This may also have been influenced by external shifts, such as an increase in pricing pressure, and conformity to seasonal norms. Conversely, January 2015 has a yearly record low for vehicle age (at 48 months), which was reflected by an upturn in average selling price. Again, this may also have been the result of external patterns – January's market was incredibly robust, which could have directly influenced values.
Daren Wiseman, valuation services manager at Manheim, commented: “It's not as simple as saying 'the newer the car, the higher the selling price', but it's no secret that a vehicle's maturity plays a central role in determining its value. Obviously, age is just one factor. To command top drawer prices, a de-fleeted vehicle needs to have a relatively reasonable mileage and should be in best-quality condition. External influencing factors, such as demand, might lie out of our control but shouldn't be ignored”.