INVESTIGATION
Auction fever continues as used car stock is snapped up by trade and consumer buyers across the UK by James Baggott @CarDealerEd
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upply of used cars is still way behind demand as auction houses across the country struggle with increased activity on used car dealer forecourts. Car Dealer Magazine has spoken to some of the biggest auction houses in the country, and while some admit that things are starting to get better from the lows of lockdown, they’re still not perfect. Auction houses – mostly conducting their sales online still – are seeing huge numbers of buyers registering for sales and prices continuing to rise. While most buyers are traditional car dealers scrabbling for stock, a number of consumers are battling dealers at auctions too, pushing up prices from trade sale prices to nearer consumer sale money. Cox Automotive, which runs Manheim Auctions, has reported used car prices increasing by a whopping 15.6 per cent year on year and in August were up one per cent on July. ‘Supply remains behind demand, specifically on the prime retail-ready stock,’ said Philip Nothard of Cox Automotive. He said supply was slow to start as Covid-19 restrictions began to ease and, while things improved a little in July, the continuing demand for used cars in August had continued to sap supply. Nothard added: ‘Supply isn’t currently showing any immediate signs of flooding the market due to challenges facing supply in the new car market as productivity remains low for several brands, and fleet and rental operators continue to hold back compared to usual.’
1,500 online bidders
BCA has seen an incredible number of buyers at its online auctions, with one sale attracting a record 1,500 bidders – far in excess of what would be seen in a typical auction hall. The trend for online auctions looks to set to continue too as auction houses have realised they can sell just as much stock without the set-ups required for sales all over the country. While none are suggesting they’ll be scaling back their physical auctions any time soon, quietly we would expect that most are at least thinking about it. ‘We have had up to 1,500 buyers logging in for some individual sales, underlining the appetite the market has for the stock on offer at BCA,’ said Stuart Pearson, BCA chief operating officer. BCA was seeing improved levels of supply, though, which was being ‘well matched’ by the demand from buyers, he added. City Auction Group is predicting an upturn in used car stock as the 70-plate partexchanges wash through the system followed by increased activity from fleet and lease companies. ‘Currently, supply is temporarily lower due to the 70-plate change period, which in reality is completely normal for this period for a two-three-week timeframe prior to the next expected surge of vehicles from mid-September,’ said chief executive Michael Tomalin. ‘The major contract hire companies, finance houses and franchised dealer groups have discussed in recent weeks a predicted upturn in vehicle returns.’ City Auction Group has seen a 149 per cent increase in trading at its Rockingham site and 43 per cent revenue growth at its Belfast auction in the past three months. 34 | CarDealerMag.co.uk
The major contract hire companies, finance houses and franchised dealer groups have discussed in recent weeks a predicted upturn in vehicle returns. Michael Tomalin
