The Gavel - 6th February
Our resident auction experts Andy Conde and Stuart Peak share their views on the current wholesale market.
Andy Conde - Cars
As we move into a busy February, the festive break is starting to feel like a distant memory. With performance continuing to be as strong as the dizzying heights of last year, I’m starting to wonder, did we ever have a break at all?
Our auction halls are packed with buyers, conversions are hovering around 90% and CAP results are very close to 100%, but I must admit that the market is still playing catch up a bit after the severe drop in CAP prices in the middle of 2019.
Good news is that demand remains as strong as ever. We’re all scrapping for cars to sell and buyers are scrapping for cars to buy. Irrespective of the volume on offer, buyers are willing to travel across the country and attendances of 100+ online via Simulcast have become commonplace. It’s truly a fantastic time to be an auctioneer.
I have previously warned vendors to temper their expectations on certain vehicles after seeing rejected bids very close to CAP clean on cars that are certainly not in CAP clean condition. Oftentimes the car will end up selling for less at the next sale.
Meanwhile, the majority of our manufacturer vendors are enjoying 100% conversion successes at the moment but have reported there could be shortages of stock by the middle of the year. This will only increase demand for this type of premium stock.
Why the shortage? Well consumer demand for used cars is on the increase and this is having knock on effects to the delivery of new cars.
Dealer part-exchanges are also decreasing with many dealers either selling their ‘swappers’ on their forecourts, or retail buyers are disposing of their old vehicles via a different route prior to buying a new one.
We must make sure we keep a close eye on supply and react accordingly, but for now the market is in a very strong place. Long may it continue.
Stuart Peak - LCVs
As we enter February and reflect on the LCV market over the last month, what can we take away? Quite simply it was another fantastic month.
On average, LCVs have been selling for £6466 - an increase of £326 on last month and with four out of five selling first time.
It’s safe to say that buyer demand hasn’t slowed at all since the start of the year, with our auction halls jam packed with buyers wherever you go. Dealer confidence is rise and when I speak to our buyers they’re telling me that retail demand is excellent, meaning they can go out and spend at auction.
Attendance throughout the month has been incredible with over 1,300 unique buyers registered. Digital channels are also on the up with record numbers attending our auctions online via Simulcast and bid/buy now events seeing a 139% sales increase YoY.
One of the great things about selling at auction is it’s hassle-free for our customers. I was recently speaking with one of my friends from the construction industry who mentioned the headaches caused by his clients extending invoice-terms and missing payments. With auctions at least you always get paid promptly!
One final thing - I mentioned in my last blog that I was excited for Alphabet joining the sales programme fortnightly at Shepshed. It was great to see a jam-packed hall for the first sale resulting in a 97% conversion rate and strong CAP figure to boot. Our next sale for Alphabet is this coming Monday starting at 11:00 – certainly not one to miss!