Strong Demand Pushes Up Auction Values
- April 15, 2019
- Posted by: John Swift
- Category: Automotive Industry
Buyers paid more for stock at auction last month with average values for fleet and lease, dealer part-exchange and especially nearly-new vehicles all rising compared to February, according to the latest BCA Pulse Report.
As expected, the overall headline figure dropped back slightly with a year-on-year increase of just £25 but that came on the back of dealer part-exchanges coming onto the market during the March plate change month and the extra supply slightly depressing rises elsewhere and the average mileage and age both being up too.
BCA said the average mileage of all cars at its auctions was 48,952 against 47,474 in March 2018, the average age stood at 57 months (54 in March 2018) with the average price standing at £9,693 against £9,668.
Fleet and lease vehicles coming back from contract averaged £11,546, the second month running they have shown an uplift and by around £425 from a year ago; average age and mileage were broadly similar.
It said the quality of dealer part-ex stock coming into its system showed improvement and the better vehicles which are easier to move on saw a year-on-year rise of around £320 in average value at £5,217 against £4,895.
Nearly New The Stand Out Sector
The stand out performance came in the nearly new sector where continuing demand for low mileage stock from both retailers and their customers helped fuel a significant jump with values rising to £23,314 during the month. This is an increase of £4,445 (24%) from the average of £18,869 seen in March 2018; average age remained about the same at around eight or nine months and mileage fell slightly this time to 8,394 from 8,934.
Trade insiders say the pull on nearly-new stock probably reflects the renewed focus among franchised dealers on the second-hand market as they try to take up the slack in the new car market.
Stuart Pearson, Chief Operating Officer, BCA UK Remarketing, said there is still a healthy trade market for well-prepared and sensibly priced vehicles but warned that dealers will need to be careful striking a balance between finding the right stock but paying too much as the March plate change effect ripples down through the industry at the same time as consumers are perhaps thinking more about going on an Easter break of paying for them.
“Demand continues in the market for accurately valued vehicles in the best condition and reflecting seasonal patterns, we’ve seen a lift in volume from both fleet/lease and dealer part-exchange sources.”
“The seasonal run of public Holidays over the Easter period and into May has the ability to put pressure on the market at a time where 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.”
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