Seasonal SUV demand increases

Used car dealers are experiencing the usual surge in autumn demand for SUVs, according to new data.

October figures from Manheim and Motors.co.uk, which are both owned by Cox Automotive, showed that average selling prices were up and SUVs were taking four days fewer to sell when they were on the forecourt. The vehicles were stocked for an average of two days less on the wholesale market.

If you are changing your winter stocking plans to take account of the seasonal variations in demand, make sure you have the correct insurance coverage. You may need to alter your motor trade insurance policy to account for the higher value vehicles you have in stock.

Daren Wiseman, head of valuations at Cox Automotive UK, said: “The seasonal trend of increased demand for SUVs continued from the previous month, and we expect for that to remain going into 2017.”

The figures were pulled out of data for October’s overall used car market. Manheim, which sells at auction, reported a year on year price increase of 1.3 per cent for all vehicles and a seven per cent monthly increase to an average selling price of £5,910. Part exchanged stock prices also increased by 4.2 per cent on a monthly basis, while former fleet car prices were up by almost seven per cent.

Meanwhile Motors.co.uk said its average selling price rose by 3.5 per cent from September and by almost nine per cent compared to October 2015 to £12,714.

Dermot Kelleher, director of marketing and business intelligence at Motors.co.uk, said: “The rise in average selling prices in the retail market is a positive sign for the automotive sector as a whole, and underlines robust consumer confidence.”