The Gavel - 4th September
Our resident auction experts Andy Conde and Stuart Peak share their views on the current wholesale market.
Andy Conde - Cars
Now that we have reached the end of August it’s important to stop and reflect on how the month has performed. Following on from my last update in which I discussed the positive impact the reduced CAP valuations had had on the market, I’m pleased to say that the market has continued in the same vein with conversion rates and prices seeing significant improvements.
Even more positive is that I believe this isn’t just a flash in the pan and we should see similar performance in September.
As ever buyers want high-quality used stock, but we’re starting to see supply hitting the market slow down considerably causing demand to outstrip supply.
We have had many sales of late hitting the 85% conversion mark and prices in excess of 100% CAP Clean. This all points towards a very healthy buyer’s market.
Whilst the reduction in CAP values has helped, many vehicles do look to be of exceptional value, and I echo my previous updates by saying there really is no better time to buy a used car than now.
In fact, I’ll extend that to say there is no better time to buy a car, new or used. There are some fantastic deals to found out there and many of our vendors tell me they are expecting a very busy September for new and used as retail customers take advantage of these deals.
Historically we have always seen a reduction in vehicles offered for sale early in Autumn with numbers increasing towards the end of the month as the September part-exchange and de-fleet vehicles start to filter through. However, I predict the market to catch up after the tough Spring and early Summer months we have endured.
Stuart Peak - Commercial Vehicles
Seasonality played its part in the LCV market in June, although we did see some pockets very strong activity.
Following on from a fantastic July, August proved to be yet another superb month in the LCV world, with consistently strong results across the board and strong buyer appetite.
As expected, the cleanest retail-ready stock is most popular, and we sold to 940 unique buyers throughout the month with our top buyer purchasing 59 units.
Overall average age, mileage and selling price was virtually identical to that in July and we saw a slight increase in first time conversion. This is very encouraging news considering the summer holiday period and uncertainty around Brexit. I would have fully expected these factors to have played a part in a seasonal downturn, but in fact quite the opposite has happened and we have seen a very positive and buoyant LCV market throughout July and August with the outlook for the remainder of 2019 looking positive.
34% of all stock sold throughout the month was manufactured by Ford, with the Custom leading the way with 85% selling first time at 99.15% CAP Average - this is a 5% increase month-on-month. It’s no coincidence that everywhere you drive, you will see a Ford Transit Custom! A truly great van and a game changer to the LCV market since its launch 7 years ago.
The 4x4 market is still a little patchy as expected given the time of year, although with further CAP book drops on certain models in September, I only see demand start to increase as the nights draw in and the temperatures drop.
As is often the case, anything ‘oddball’ continues to gain great interest and highly specified vans will always make a premium, particularly if they’re in excellent condition.
Overall, a sizzling summer in the LCV world at Manheim.