Andy Conde on Manheim rostrum

The Gavel - 20th August

Back to blog   |   Back to news

Andy Conde - Cars

Andy Conde on Manheim Rostrum

In previous editions of The Gavel I have discussed the impact of the CAP book reductions to the auction market. This time round I’m pleased to say that the new values have stimulated conversion rates at Manheim as well as the prices achieved for used cars. 

We are now seeing vendors leave the rostrum with a spring in their step, something we have not had for quite some time. It’s become commonplace to see conversions in excess of 80% with close to 100% CAP Clean.   

However, many vendors especially those in the manufacturer sector are seeing considerable number of units coming in for sale causing them to stockpile. It seems a funny problem to have, too much stock, but it does cause a headache for those vendors managing their inventory when it’s far in excess of their normal numbers. 

Interestingly, despite some vendors seeing an increase in their inventory, the number of units actually being offered for sale is lower than recent times. Along with the CAP book reductions, this has bolstered competition for stock and helped increase conversion rates.

I have said many times before that quality stock sells – the better the grade, the better price achieved. There really is no reason why vendors shouldn’t be refurbishing their vehicles as they are guaranteed a much better return. Competition is fiercest for the best stock, so it makes sense for them to invest.

On the flip side, higher grade stock will also sell in the retail market quicker. The quicker the turnover in stock, the quicker the buyer comes back to auction.

Buyer footfall is increasing week on week in line with reports of a much busier retail period. It’s clear that confidence is returning to the forecourts and as I’ve said previously, my belief is that there is no better opportunity to acquire a quality used vehicle at such a competitive price than now.

Y Close
Login to your account