Swindon, Wiltshire -- (SBWIRE) -- 03/25/2015 -- After four consecutive months of growth, the price that dealers pay for used cars has begun to fall back. The Manheim Used Vehicle Index fell back to 125.1 in February. This is still an increase of 1.5% on the same month in 2014, but the general trend is now downward again.
However, there has not been an increase in used car purchasing prices across the board. The biggest increase is seen in how much is paid for pickups. Year on year the amount paid is up by 7.7%. For the SUV/CUV class the prices rose by 2.1% in comparison to 2014.
The price paid for vans at auction also rose by 4.5%. There is some speculation that the fact the construction industry is showing signs of recovery has led to the increases for pickups and vans.
Interestingly, the price paid at auction of compact and midsize cars both fell. This is despite increased demand from consumers for both of these vehicle types. Demand that the used car industry expects to continue to grow during the first part of 2015 as people finally end up with more cash in their pocket.
During the last quarter of 2014, and the first part of 2015 sales of used cars in Swindon and many other cities in the UK reached record levels. The number of units sold was higher than in 2006, which was the last time that used car sales were at record levels.
However, currently it appears that many dealers are still selling through stock or sourcing their cars more from the private sector because auctions sales were down slightly for February. The slightly lower auction demand is thought to account for the slight fall in the average price paid.
Other major used car auction reports also showed a decline in the wholesale prices being paid at auction. If consumer demand continues to rise for used cars this is likely to leak through to the wholesale market and cause the wholesale price to rise.
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