Manheim-Australian-Market-Report-Q3-2016 | Page 13

Australian Market Report Manheim Market Analysis Manheim Used Car Market Kms by Segment Manheim Used Passenger Cars by Segment Normally one of the most stable segments, the Corporate sector experienced significant ups and downs in Q3 compared to Q2. Like we saw in the Government segment, the average age was also slightly down for Corporate vehicles sold in Q3 (down 2 months) and kms travelled were also on the rise. I n the Government sector the average kms went up moderately, by almost 6 per cent compared to Q2, while at the same time the average age came down very slightly (down 3 months). With a jump of approximately 4,835kms on average for government vehicles sold in Q3 compared to Q2, one might have expected a drop in prices. With strong demand for quality government vehicles continuing, buyers took the increased kms in their stride and sale prices actually increased. Average kms were up almost 7,000 compared to the previous quarter which was reflective of increased supply from sellers whose customers held on to vehicles for longer (ie extending leases) than usual. With average kms up by 6 per cent, buyers weren’t willing to pay the prices achieved in Q2, with an average price drop of 6 per cent recorded for Corporate vehicles sold in Q3. In the Rental segment it was once again very much a story of highs and lows. Unlike every other segment in Q3, the age of Rental vehicles sold at Manheim actually increased, albeit only by about 4 months or so. > Buyers paid on average $457 more for vehicles in this segment than in the previous quarter. Dealer/ Trade Jan -14 Fe b1 Ma 4 r1 Ap 4 r1 Ma 4 y14 Ju n14 Ju l Au -14 g14 Se p1 Oc 4 t1 No 4 v1 De 4 c1 Jan 4 -15 Fe b1 Ma 5 r1 Ap 5 r1 Ma 5 y15 Ju n15 Ju lAu 15 g15 Se p1 Oc 5 t1 No 5 v1 De 5 c1 Jan 5 -16 Fe b1 Ma 6 r1 Ap 6 r1 Ma 6 y16 Ju n1 Ju 6 lAu 16 g16 Se p16 Each quarter we will continue to report on the performances of our different market segments, to provide you with an overview of the trends in the age, kms and prices of vehicles making up the Manheim used vehicle market. 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Rental Corporate Manheim Used Car Market Avg Vehicle Age by Segment Years 14 12 10 8 6 4 2 0 Jan Fe 14 bMa 14 r1 Ap 4 rMa 14 yJu 14 n1 Ju 4 l Au -14 gSe 14 pOc 14 tNo 14 vDe 14 cJan 14 Fe 15 bMa 15 rAp 15 rMa 15 yJu 15 n1 Ju 5 l Au -15 gSe 15 pOc 15 tNo 15 vDe 15 cJan 15 -16 Fe bMa 16 rAp 16 rMa 16 yJu 16 n1 Ju 6 l Au -16 gSe 16 p16 Recent special event trade only auctions with our fleet and leasing customers have also been very successful and have no doubt influenced sales results. Kms Government Q3 Manheim Used Car Market Avg Sales Price by Segment Sales Price $20,000 $18,000 $16,000 $14,000 Segment Avg Vehicle Age (Years) Avg Kms Avg Sale Price Government 4.5 86,758 $16,850 Corporate 5.5 119,061 $14,350 $6,000 Rental 4.0 101,136 $11,539 $4,000 10.7 174,289 $5,719 $12,000 $10,000 $8,000 Dealer/ Trade † Source:: Manheim Used Car Market Report $2,000 $0 Jan -14 Fe b1 Ma 4 r1 Ap 4 r1 Ma 4 y14 Ju n1 Ju 4 lAu 14 g14 Se p1 Oc 4 t14 No v1 De 4 c1 Jan 4 -1 Fe 5 b1 Ma 5 r1 Ap 5 r1 Ma 5 y15 Ju n1 Ju 5 l -1 5 Au g15 Se p1 Oc 5 t1 No 5 v1 De 5 c1 Jan 5 -16 Fe b1 Ma 6 r1 Ap 6 r1 Ma 6 y16 Ju n16 Ju lAu 16 g1 Se 6 p16 Passenger & Commercial Manheim Used Segments Q3 13