MPV consistent sector performer
Written by: Mark Bulmer
Even though vehicle volumes in the wholesale market continue to be higher than at the same time last year, most sectors seem to be holding up well. Although values have continued to ease down in recent weeks, it has been at a slower rate than perhaps some may have anticipated.
This sector continues to have a good supply of low mileage 3 year old stock available for sale in the wholesale market. Demand from retailers replacing stock has also continued to be healthy. Although some models may have seen some downward movement in values over the last few weeks, overall they have performed better than at the same time last year.
Popular choice for retail customers
Unlike some other sectors where the purchase of a car by a retail customer could be driven by the heart and not by the head, this sector is different. Most customers who make the decision to purchase an MPV because they need it to perform a specific function, whether that’s ferrying the family around or they require a vehicle robust enough to carry what is required with the minimum of fuss and that is why the name multi-purpose vehicle is so apt.
Competition in a changing market
Pressure from other sectors like SUV/ crossover have taken some customers away from this sector and perhaps going forwards, smaller MPV models might see vehicles like the Renault Captur and Vauxhall Mokka also make some inroads into the small MPV sector in the future.
Strong sector performers April to July
Vauxhall Zafira (05-) 1.7 ecoFlex Exclusiv 110 11/11 at 30K £6925 - £7100 up £175
Ford S-MAX ( 10-) 2.0 TDCi 140 11/11 at 30k £12950 - £13000 up £50
Renault Grand Scenic (09 – 12) 1.5 dci Dynamique Tom Tom £7825 - £7725 down £100
All three models have seen a good supply of stock enter the market over the last 3 months but still continue to show strong, and in some case increasing values, even when the market has seen values move back.
What the dealers think
It’s clear to see why the MPV sector continues to be very popular with retailers. Finding fresh stock can sometimes be easier compared to some other sectors. Demand from retail customers continues all year round and rarely seems to be affected by seasonal changes in the market, unlike some others. Retailers always seem to be able to sell this stock with regularity, then replace it quickly which in turn helps with stock management and the most important thing - return on capital. Whilst speaking to dealers recently it seemed clear this sector will continue to be a favourite when choosing the right model mix, to meet the needs of the buying public and at the same time helping to achieve the dealers financial targets.
Reflecting the market through Black Book Live
MPVs are likely to remain popular over the coming months but wholesale volumes across the board are high, so supply and demand will as always be the main driver for values. Black Book Live will help buyers and sellers keep their fingers on the pulse of the used car market real-time.