Auctions see sector value uplifts in April

Dealers need to present well prepared and accurately described stock which has full documentation and a realistic reserve to sell at auction as a new report reveals some market hot spots.

A leading auction house said that there was strong demand in some sectors last month with fleet and lease, dealer part-ex and nearly new vehicles bucking the seasonal trend and recording value uplifts but the market generally remained sluggish.

The latest BCA Pulse report shows that fleet and lease values averaged £11,406, up £269 (2.4%) compared to a year ago. The average age was up at 39 months but average mileage fell to 39,000. Against April 2018 dealer part-ex values were up £150, a 3% uplift, at £5,150 despite average age and mileage falling and demand remains strong for nearly-new vehicles with values at £22,557, up by £3,387 or 17%.

To put that into context, the Pulse data shows that for the market as a whole and covering all cars, average transaction values stood at £9,248 against £9,584 in April 2018 although this year’s cars had slightly higher mileage, at 49,299 versus 47,637.

Realignment not unexpected

Stuart Pearson, BCA UK Remarketing, said:

“As predicted last month, the seasonal run of public holidays over the Easter period and into May has put pressure on the market at a time when supply is typically plentiful. As ever, our advice is for vendors to be disciplined around the remarketing process with enhanced preparation, accurate descriptions, comprehensive documentation and, most importantly, realistic reserve setting ensuring that buyers remain actively engaged.”

He added: “Buyers have been particularly cautious as we’ve seen values shifting on an almost weekly basis since the start of April. Based on the sustained increase in values over many months, some realignment is therefore not unexpected and isn’t unusual for this time of year.

Last week the SMMT reported that Q1 used sector sales were down just -0.6% at 2 million with powertrain and segment popularity remaining much as before.

Hybrid, plug-in hybrid and pure electric cars continued to grow, up 31%, with 32,272 models changing hands but AFVs took just 1.6% of the market. Unsurprisingly, superminis retained the lion’s share of sales with 676,395 leaving the forecourts and SUVs saw growth of 6%.

Year-on-year table: All cars

Year-on-year table: Fleet & Lease

Year-on-year table: Dealer Part-Exchange

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