Weekly auction update from Andy Conde - 13th July 2015
The majority of reports coming back from around the group this week have been full of positivity with conversion rates and prices achieved remaining healthy.
Leeds on Monday had one of the best sales for several months with an abundance of buyers in attendance, yet the supermarket buyer was not as active as many had been buying strongly and had plenty of stock. What we did see was the owner/bidder sector cashing in and being prepared to give premium prices for premium stock.
It is frustrating that some vendors are still chasing cap and not taking into consideration vehicle condition, cost of repair and general market conditions. Reading and understanding the markets is a vital part of the remarketing business and those people who do this well are key, the buyers will follow them and will pay good money in the knowledge that their vehicles are in the auction to be sold and not just to be valued. Those vendors who continually take bidders out and are quite happy for their vehicles to see sale after sale in the chase for cap lose out.
The general consensus from many of our buyers is that the job will remain steady throughout the summer months but pricing will be so important. Come September, when the flood gates open we need to be wary, as over supply plus over pricing equals a disaster for everyone.
The big factor for the majority of our buyers is condition, age doesn’t really come into it
an example of this was a Mercedes Benz SLK in Haydock, 2000 in the year so 15 years old, but only 1 lady owner from new who had treated her pride and joy with love.
Only 11k miles on the clock, the vehicle sold for well in excess of its reserve - put a private plate on it and nobody would guess the age. More and more of our buyers will only buy grades 1, 2 and 3 and those vendors who are prepared to speculate on refurb are certainly seeing a benefit.
So, I close this week as I began, with a quiet optimism and a belief that our auctioneers are the best in the business, not only at selling but also at understanding the buyers and reading the markets and with this combination we can offer the best possible service to our customers.