Weekly vans update with Matthew Davock - 14th September 2015
Where is the year going? The first week of ‘65’ September has had an undertone of uncertainty in the wholesale auction marketplace. Many independent dealers are telling me that their last two weeks of August was spent focused on moving stock. Unsurprisingly, franchise dealers confirmed they were concentrating on new registrations and their cheque books would not be opening until later on in September.
On the back of this uncertainty we have witnessed encouraging buyer registration numbers during the week. All our auctions have had a good atmosphere with buyers showing some joyful spirit! Despite ‘foot-fall’ and ‘click-fall’ being very good, some buyers remain very selective. After speaking at length to a good number of the UK’s top volume van buyers, it is apparent retail activity remains slow.
Many have reported the last fortnight as being very poor. Whilst this is typical of the end of summertime seasonality, what differed in 2015 was the record sales performance in the first fortnight of August! Clearly buyers were spurred on by this; believing the typical September recovery had come early. A false start perhaps, but nothing to be concerned about for the remainder of the year.
Taking into account all the above, we have seen a consistently strong performance and conversion rates have been healthy. Many vendor section results have come in between 75% and 90% conversion and performance to the guide has ranged between 96% and 104% of CAP Average.
Against a backdrop of vanilla vans, we have seen this week the significant performance influence a half a dozen rare lots can make in a vendor sale section. Buyers are chasing to secure this stock and are paying huge premiums to get them; some lots this week have exceeded 140% of CAP Average!
Clean condition vans are also well received and speaking as an auctioneer; these have been easy to sell. We’re earning our stripes securing bids on damaged stock - this is where we have needed to work really hard as buyers remain super selective. Some vendors have AVERAGE damage values of over £1,000 per van.
What’s been hot this week
What’s struggled against guide this week
Clean condition and low mileage remains key.
For the first time in months we have seen Transit chassis cab, tippers and dropsides move from “Hot” to one that is struggling to the guide, the demand has also seen a dip over the last 2 weeks.
The buyers are telling me that over the past 12 months there has been a real shortage of chassis cab stock in the market place of which they payed massive premium money to own these units when they came available in sales. But they say this stock has jumped up to much in money terms, previous years the same age and mileage would be bought and retailed £3,500 cheaper than today. With more appearing in sales now I feel these units could dip to around the 90% of the Guide and not the 120% plus we have seen in the past.
To conclude this week has remained strong, we have seen a slight decrease in catalogue numbers which should support the overall performance over the coming weeks I just think we need to be mindful around the feedback above.
Thank you again for your much valued business and continued support. Tune in every Monday to see how we’ve performed. Until then, keep ‘Sharing the CV Love’.