The Gavel - 17th January
Our resident auction experts Andy Conde and Stuart Peak share their views on the current wholesale market.
Andy Conde - Cars
Now we’re two weeks back into the swing of things, it feels like a good time to take stock of where things are at in the market.
Usually the first week of trading of the year is a relatively sedate affair whilst everyone dusts of the Christmas cobwebs, but I’m pleased to say that this New Year has started off with a bang! (pardon the pun).
From day one the demand for used cars has been unprecedented. Conversions are averaging over 90% across the board with many vehicles selling for considerably more than CAP Clean. It’s fair to say there have been many happy vendors leaving the rostrums.
The growth in auction prices is obviously related to supply, or should I say lack of supply, but I have noticed a feeling of confidence across the board since the election result, something that’s not restricted to just our industry. It feels good to have some economic certainty again and I hope this feeling continues throughout the year.
Buyers are certainly chasing the stock wherever it goes, and we are seeing vast numbers attending those sales that have large volumes.
With high prices and high conversions comes the added high expectations from our vendors. We’re fortunate to be in that position, but the bar has been set for the year now and I only hope that the market doesn’t ease off so we can continue to deliver. I am constantly asked how long the current trend can last for and the answer I give is simple – as long as the buyers and the demand are there, the status quo will remain.
Stuart Peak - LCVs
I can’t quite believe the Christmas break is over and we are back in the swing of things in 2020, but I’m glad to be back and at the start of what I hope is another fantastic year in the LCV market.
The year has started with a bang with incredibly strong demand for stock. My first sale of the year was at Haydock last Tuesday and with 360 vans available, I was hoping for a good result. With demand as it is, it was no surprise to see record numbers of buyers registered in the hall and well over 300 more online via Simulcast.
First time conversion on the day came in at just over 93% with vehicles selling at a shade under 105% CAP Average – what a way to kick off the year!
Looking further afield conversion rates across Manheim have been excellent and I have noticed renewed confidence for people to go out and start spending again, especially now the General Election is a distant memory.
Reflecting on December, our overall sold volume increased by 8% YoY which is pleasing to see considering the major factors impacting the industry. 2019 was a year that had its challenges but analysing the data has showed me just how robust auctions are, particularly in the used LCV market.
Days to sell reduced by 4 days vs 2018 which again shows the demand for used vans despite average age and mileage increasing.
I could wax lyrical about the importance of our online sales channels so I’m happy to see the huge growth in this area in 2019. 9% of our total volume sold via an upstream selling channel – a huge reason why we’re seeing days to sell reduce.
One last thing - don’t forget that we welcome Alphabet to the LCV sales programme at Manheim soon, launching Monday 27th January with a fortnightly sales programme. Not to be missed!