The Gavel - 5th November
Our resident auction experts Andy Conde and Stuart Peak share their views on the current wholesale market.
Andy Conde - Cars
These are uncertain times for the wholesale market - we’ve all been anticipating a dip in the market with all signs indicating the status-quo is about to change, and then BOOM! It kicks back into gear. It’s certainly keeping everyone on their toes.
Buyers are still keen to acquire high-quality stock to satisfy consumer demand, but as has been the case for a while now, stock of this ilk is few and far between. Many buyers are forced into buying grade 3 and 4 vehicles when they would usually be purchasing 1/2/3s to fill their half-empty forecourts.
Fortunately, this isn’t a huge problem when it’s possible to refurb a lower grade vehicle and still obtain a healthy margin.
2019 has been an extremely unpredictable year – around this time I would usually advise you that the markets will take a dive in November and improve in the second week of December, but who knows what will happen now. The announcement of the General Election only confuses matters. Here’s to hoping that this uncertainty is swallowed up by the pre-Christmas festivities.
Several rental and manufacturing vendors are looking to remarket large batches of vehicles to large car supermarkets and dealer groups, but this could affect their willingness to compete in the open auction environment. The danger of this is underselling rather than offering vehicles in an open remarketing environment.
So, as we head into the winter months, I find myself in a dilemma when I try to predict what the future holds. What I can say with utmost certainty is that at every Manheim auction centre you will find a great selection of vehicles, plenty of buyers and a team of quality auctioneers looking to make bids - not just take bids!
Stuart Peak - LCVs
In my last blog I wrote about how the market has kicked on to another level – and I’m pleased to say that for LCVs, this trend has continued.
We’re seeing some truly fantastic results at the moment - October was our second strongest month of the year for volume sold, average days to sell has reduced further, average selling price is up to £6,126, 44% sold via an online transaction and finally, first-time conversion increased by 3% vs September. That’s a lot of numbers to digest, but it demonstrates how the market continues to outperform our expectations.
Buyer confidence remains high across the country with one buyer purchasing 90 units throughout the month. Times like these truly highlight the excellence that our operations deliver week in, week out to enable us to achieve the great results we’re becoming accustomed to.
So, what is on the horizon for November? At Manheim we’re fortunate to receive many unique vehicles and coming up soon we have a beautiful Mercedes Sprinter 514 MWB Versalift ETM38 from LeasePlan. What makes this unique is the 14-metre reach access platform and the fact it has only covered 1,271 miles. A stunning vehicle, but what is it worth? Well I have a gut feeling which I shall keep to myself for the time being… Euro 6 Compliant, this vehicle is ready to go to work in London.
I’ll keep you posted on that particular vehicle, but in the meantime make sure to check out our excellent range of commercial vehicles.