Weekly vans update with Matthew Davock - 13th July 2015This week the auction hall's footfall has dropped on prior week but online Simulcast numbers have increased with some sales showing as much as 90 buyers online at any one time.
From an auctioneer point of view this week has remained to be one where you dig in and work your physical and online buyer base like never before. Auctioneering valuation skills have been the order of the day and the auctioneers that pitch the starting bids too low or too high have suffered buyer apathy. Buyers seem to have limited attention spans, they are seeing which vendors are there on the rostrum to engage and sell vans; providing it is on the buyers’ shopping lists! The majority of buyers are working to similar shopping lists and those that fall into this category are making premium money.
The feedback am hearing, both from self-funded and NextGear Capital’s funded 159 van dealers, universally agrees that retail activity remains very slow. One dealer confirmed their phone hadn’t rung in 5 days! Stock numbers these buyers are carrying remains high so the appetite to purchase is diminished.
Buyers have confirmed the following to me as major concerns:
1. The amount of damage they are seeing on vehicles
2. The amount of duplication they are seeing in the auction halls
3. The reserve expectations on sub 2 year stock – too close to the cost of a new vehicle
Heavily duplicated stock this week includes Peugeot Partner, Citroen Berlingo, Nissan NV200, Vauxhall Vivaro, Renault Traffic and Volkswagen Caddy. Late and low mileage stock remains to be a challenge. On paper these should be very good news to all retail buyers.
We’re witnessing an all-time new van registration record unfold this year. The SMMT latest forecast says 355,000, some industry pundits are now predicting 375,000 plus. Will be interesting to see the July re-forecast from the SMMT. All this means some heavy discounting, forced registrations and fantastic deals on new. This is logically having an impact on nearly new and sub two year old stock in the auction halls. The challenge is we are seeing many examples that are too close. In some instances one year old used stock booking more than a new one! I feel the discounting will continue and perhaps increase come September.
What’s been HOT this week:
Clean condition and mileages remains to be key and these have definitely been on the buyers shopping lists this week….
To conclude we are investing a great deal of energy engaging the buyers and for our industry. Whether online or in the halls our industry leading auctioneers use their expertise and experience to get bids, and work hard around the heavily damaged and duplicated stock currently in the market place.
Thank you for your much valued business and continued support. Next week is gearing up to be another industry leading week. We’ve got some exciting plans coming up in August to mark the Transit’s very special 50th birthday.
Until next time, keep ‘Sharing the CV Love’.