High demand for stock drove strong October wholesale market
October saw mixed fortunes for automotive according to the latest data from Cox Automotive. In the latest dealer sentiment survey from Modix, 55% of dealers reported that consumer demand was down YoY.
On the other side of the coin, the wholesale market recorded increased volumes and good levels of demand as retailers competed for the most desirable stock.Manheim reported an 18% MoM increase in the volume of vehicles offered for sale in October, driven by an increase in both part-exchange and fleet vehicles, up 18% and 22% respectively.
Strong buyer demand across the month meant that 88% of vehicles were sold first-time, up 1% MoM.
Manheim also reported a MoM increase in its average sold price, up 9%, although the figure remained level YoY. Dealer-Auction.com also saw demand push prices up, and vehicles sold on the trade-to-trade online auction platform achieved an average 99.4% of CAP clean across the month.
Philip Nothard, Customer Insight and Strategy Director, said: “October saw the availability of younger stock (up to three years old) improve slightly with a 22% MoM increase in fleet vehicles at Manheim.”
“This increase brings fleet volumes up to a normal level for the time of year, but buyer demand is even higher than usual because this type of stock has been in short supply over recent months.”
Data from Manheim reveals that average prices for diesel vehicles fell YoY in October, this reflects demand to some extent, but is also influenced by a lower number of 1-3 year old diesel vehicles in the market.
The 53.8% increase in the value of electric vehicles is a sign of growing dealer confidence in stocking these vehicles.