The rapid rise of taxi app firm Uber in the UK is fueling demand for MPVs at auction and causing values to rise. The average value of MPVs coming to market at Manheim is now 18.3% higher than it was a year ago.
Values continue to rise in 2015. The values of MPVs rose 5.1% in July compared to the previous month. “Although the MPV may be less popular with families than it once was, due to the rise in the compact SUV market, there are other markets where demand remains high, such as private hire fuelled in a large part by Uber,” said Manheim.
Drivers can join Uber in a number of categories . The XL category calls for “professional drivers driving an MPV that comfortably seats six passengers.”
Travis Kalanick, founder and CEO of Uber estimates there will be 42,000 Uber drivers in London by 2016. The average value of dealer part-exchange stock sold through Manheim’s auctions in July increased very slightly by 0.4% (£15) compared to June, but was up by 9% (£281) year-on-year.
Much of the growth in the used market came from smaller cars, with average values for small hatchbacks, which accounted for 26% of sold volumes, increasing by 2.3%. Compared to July 2014, supermini values were up by 13.6%.
Daren Wiseman, valuation services manager at Manheim, commented: “The demand for good quality part-exchange is keeping values strong. As we look ahead to the plate change month of September, we expect to see great stock available both in-lane and online, coming from dealer part-exchange as well as Manheim’s car buying companies, that will leave buyers with plenty of choice.”
