Limited supply met strong demand in September wholesale market
Data released today by Cox Automotive reveals an extremely competitive wholesale market driven by unseasonably low September stock levels.
Manheim saw 87% of cars sell first time across the month, with many achieving or exceeding the guide price.
In terms of stock mix, Manheim figures reveal that average age and mileage increased slightly month-on-month (up 1.3%), while average price held steady at £5,679 (up 0.3%).
NextGear Capital, the leading provider of wholesale stock funding, also saw average age and mileage hold relatively steady, but reported an average price increase of 6% MoM to £7,761.80.
Philip Nothard, Customer Insight and Strategy Director – Cars, said: “A number of factors have combined to reduce the level of stock in the market throughout August and September. Low new-car sales, long lead-times, and scrappage schemes from some manufacturers have reduced part-exchange volumes, and dealers are choosing to retail those that they take in directly.”
“This, combined with the usual seasonal reduction in the number of de-fleet vehicles at auction, had led to a super-heated wholesale market in September.”
Data from Manheim reveals a dip in fuel prices for all categories except electric when compared to the same month last year.
These figures indicate an uplift in demand for electric vehicles, but the relatively low volume of electric vehicles when compared to other fuel types means that higher percentage swings are likely.