The Gavel - 5th December
Our resident auction experts Andy Conde and Stuart Peak share their views on the current wholesale market.
Andy Conde - Cars
As I’ve previously reported, a shortage in supply of high-quality stock is causing a super-heated marketplace at the moment, with strong prices and conversions consistently above 80% across the country.
In the past I have always been an advocate of the first bid being the best bid. However, in recent weeks I have been pleasantly surprised to see numerous cases where I’ve been wrong. With the market as competitive as it is, oftentimes when vendors have re-entered stock, they’ve gone on to see even higher bids.
With everything going on politically and economically, I don’t mind being proven wrong as it’s just another sign of the unpredictable times we’re operating in.
Going into December I envisaged many of the ‘big players’ such as the car supermarkets taking a breather so to speak, but there appears to be no signs of them slowing down and the market remains as strong as ever.
As we head towards the New Year, I wonder whether we will see the usual spike in prices. If retail demand remains high and supply remains as low as it is, I suspect we will. The key for vendors is to get their vehicles in the wholesale market as soon as possible to ensure a good result.
Stuart Peak - LCVs
I can’t quite believe that I’m already writing my last blog of the year. With Christmas just around the corner it’s important to reflect on the fantastic year we’ve had.
If I look back over the last ten years, I can’t find one as uncertain as 2019. With everything going on politically there’s undoubtedly been caution around the industry, but it’s great to see that the LCV wholesale market has been resilient, with good consistency and results only getting better as the year went on.
Stock levels have dropped noticeably over the last few weeks which is to expect this time of year. But is this influencing the market? In short – no. Buyer demand remains as high as ever with packed auction halls up and down the country.
Recently I attended an auction at Manheim Colchester where BT Fleet achieved yet another 100% conversion and this isn’t a one off. Conversions remain strong across all our sales.
So, what’s happening at Manheim for the remainder of the year? One to look out for is the last Ford Motor Company sale of the year at Shepshed on the 16th December. Another is at Haydock on the 17th December which is looking to be a bumper sale with large entries from Enterprise Rent-A-Car, Arval and Arnold Clark.
There is often caution in December as people get into the holiday mode, but I am a firm believer that buyers should continue to keep stocked up to the end of the year and make the most. Competition is often fierce in January which normally means higher prices.
