Unlike every other segment in Q3 , the age of Rental vehicles sold during the quarter increased . |
verage kms were up a whopping 16 per cent
A( 14,041km ) which is the largest quarterly increase on record . Buyers considering cars with an extra 14,000km on the clock factored in the increased wear and tear and prices fell as a result . On average vehicles sold for approximately $ 3,000 less in Q3 compared to Q2 . |
The higher average kms were not entirely to blame for the price drop however . With the acquisition of some new Rental companies as Manheim customers in recent months , specialising in renting out older and cheaper vehicles , the mix of this segment was markedly different in Q3 than normal . |
With fleets consisting of lower value vehicles with higher kms than usual , the impact on average pricing was felt across the quarter .
It will be interesting to see what the impact of a different mix of rental vehicles being offered for sale will have in the longer term .
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The most stable segment in Q3 was the Dealer segment . There was only a slight movement in the average age which was down to 10.7 years old on average from 11.1 in Q2 . Likewise there was only a small rise in the average kms , with Dealer segment vehicles showing on average an extra 381 kms travelled compared to those sold in Q2 . |
The effects of both variables , which are the two main variables affecting price , almost cancelled each other out . The impact on the average price was marginal , with a miniscule fall of $ 82 on average recorded for sales in Q3 compared to Q2 . |
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