The Gavel - 18th October
Our resident auction experts Andy Conde and Stuart Peak share their views on the current wholesale market.
Andy Conde - Cars
As we approach the business end of the year, every bid and every auction counts more than ever. But just when you think the job can’t get any better there seems to be a new impetus that sees prices soar and the auction halls full of eager buyers.
Bucking the trend of recent times, the most desirable stock has been ‘run-of-the-mill’ fleet stock that doesn’t require too much work (4/5 years old, up to 80k miles). These vehicles are making well in excess of CAP clean and the signs are that buyers have stopped worrying about the guide values and are just keen to stock up.
We all keep expecting to see a surge of vehicles hitting the markets, but this has yet to come to fruition and with the current stock levels as they are, demand and prices will remain high.
However, despite the current trends, it is important that we do rest on our laurels and I can’t over emphasise the importance of rostrum representation. The value in having someone who can read the markets, has the authority to sell, and can work with both auctioneers and buyers is as important as a quality auctioneer.
Likewise, documentation is key. V5s and service histories are a must and will add considerable value to a vehicle if they are there at the time of sale - and considerable harm if they are not.
The supply of genuine part-exchange vehicles through auctions is as low as I can recall as more and more dealers are happy to retail older vehicles with higher mileages. The danger of this will be the part-exchange of the part exchange of the part exchange hitting auctions - low values plus poor conditions equals less interest, and unless the vehicles are cheap, they won’t sell.
It’s worth keeping an eye on the adjustments CAP make in the November guides as it could be interesting, but my view is that any movement should be kept to the extreme minimal, if there’s any at all.
Stuart Peak - LCVs
It’s fair to say it’s been a busy couple of weeks at Manheim – in case you missed it we won Supplier of the Year award at the prestigious Commercial Fleet Awards! It’s an achievement we are massively proud of and a testament to the incredible passion for commercial vehicles that resonates through our team. The award has been on tour around the UK so keep an eye out for it next time you’re at a Manheim commercial auction!
Now let’s discuss the market in recent times, and in the words of our very own Commercial Vehicle Director Matthew Davock – BOOM! When you feel that the market cannot get any stronger, it just seems to be going from strength to strength
Feedback from many of our loyal buyers has been extremely positive, with one who has sold no less than 25 vans since the weekend. Not bad at all for a dealer that stocks 100 vans.
We are starting to see volume pick up marginally, although I don’t envisage a huge influx of stock any time soon. This trend, coupled with steady retail activity, seems to be creating the perfect storm in the auction environment. It’s truly a fantastic time to be involved.
Stock is selling quicker than ever before, first-time conversion throughout October is at an incredibly healthy 83% and our average selling price this month is standing at £5,997. All of this points towards 2019 ending with a bang.