2020 Used Car Demand ‘Unprecedented’ Say Auction Houses
- January 23, 2020
- Posted by: John Swift
- Category: Automotive Industry
Three weeks into the new year and already trade insiders say that demand for used stock is running at ‘unprecedented’ levels with all the metrics in auction halls pointing to a healthy market.
Manheim says that it has seen conversion rates running at better than 90% with many vehicles beating their CAP Clean value and BCA adds that it has sold more vehicles in a single week than at any time in its history, establishing a new single sale day record in the process.
Andy Conde, of Manheim, said conversions are running at more than 90% and many vehicles are fetching more than 100% of CAP Clean. While that may be linked to a shortage of supply there is a feeling that growing consumer confidence and demand now the General Election is behind us is an equally big driver.
“Usually the first week of trading of the year is a relatively sedate affair whilst everyone dusts off the Christmas cobwebs but from day one the demand for used cars has been unprecedented. 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.
“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. 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.”
Meanwhile, BCA reported record sales of more than 26,000 in the second week of this month with packed halls at its 24 centres and plenty of online business too. It echoed Manheim in reporting excellent conversion rates and strong values across the board.
Incredibly Strong Demand For Stock
Manheim says the picture is equally strong in the used van market with its first LCV sale seeing more than 90% of the 360 entries being sold and beating the CAP Clean figures in the process.
Stuart Peak, Manheim’s LCV specialist, said:
“The year has started with a bang with an incredibly strong demand for stock. 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!”
He said the December sold volumes increased by 8% year on year and that days to sell second-hand vans came down by four against 2018 despite them being older and with higher mileage.