4X4 demand pushes up used values in January

Monday, 08 February 2010

Wholesale values of used 4X4s shot up in January as a result of heavy snow falls across the UK, according to the two main auction houses.

Manheim said the weather helped force values up by 13.9 per cent in the fleet sector from £1,670 to £13,643. Dealer part-exchange 4x4s rose by 21.9 from £838 to £4,668 while manufacturer submitted stock increased by 12.1 per cent from £1,960 to £18,203.

Backdrop or rising values
Manheim said this was against a backdrop of average monthly wholesale prices rising by 4.5 per cent in January to £7,187. It said it expects values to remain strong in February and March before the seasonal softening of the market becomes evident.

"Although average wholesale values increased in January, much as expected, the bad weather certainly had a disproportionate impact on 4x4 values," said Mike Pilkington, managing director of Manheim Remarketing.

Record levels at BCA
Meanwhile at BCA 4x4 values reached record levels in January, according to the company's latest Pulse Price Report.

Values averaged £12,918 in January 2010, the highest average price recorded at BCA and a rise of £647 (5.2 per cent) against December's figures. Prices had been rising throughout the winter months, with records previously set in October (£12,186) and December (£12,271). Values have nearly doubled over the past 18 months.

Buyer demand
"Nothing makes four wheel drive more attractive than a dusting of snow around the UK and the severe weather we have had in recent weeks will have convinced many drivers that they now need a 4x4," said BCA communications director Tony Gannon.

"The turnaround in the 4x4 market has been exceptional. Of all the car sectors affected by the economic downturn, few fell harder or faster than the 4x4 SUV sector and few have recovered as well in the intervening months."

Low point
Gannon said values reached a low point in July 2008 when several months of high fuel costs, combined with the faltering economy and talk of the proposed Vehicle Excise Duty and Showroom Tax saw values fall by over £2,000 to £6,723. There were even rumours that some dealers were refusing to take 4X4s as part-exchange vehicles.