Fleet News

Marketwatch: Unpredictable market as volumes flood in

THE market has proved very unpredictable over the past couple of weeks, with large volumes of vehicles at many auction centres.

As a result, 'ready-to-retail' vehicles are the vehicles selling at first time of asking, with anything requiring work or high mileage doing poorly, Manheim Auctions claims.

Andrew Shepherd, senior group auctioneer at Manheim, said that for high mileage cars 'vendors needed to adopt and attitude of 'sell it – if you obtain a bid.'

Manheim is also reporting that manufacturer sales are holding up well, with good attendances from the franchised dealers and Ford and Volkswagen proving the stars.

Demand for prestige and executive cars from professional buyers is keeping values firm at the top end, BCA claims.

The firm, which holds specialised 'Top Car' sales throughout its network, says the market is enjoying strong and sustained demand in this sector with buyers even prepared to pay six-figure sums for the right vehicles.

A recent special sale on behalf of Bank of Scotland at Bridgwater attracted hundreds of buyers from all over the UK, generating a turnover in excess of £5 million.

A total of 236 cars were sold in a 92% conversion that exceeded 102% of CAP Clean.

Meanwhile, Glass's Information Services has warned vendors not to be too greedy when it comes to selling commercial vehicles.

Experts reckon that the strong market could encourage some vendors to set reserves too high for late-year de-fleeted stock, which will see prices pushed up to similar levels as discounted new vehicle rates.

George Alexander, chief editor, commercial vehicles, said: 'When times are this good, vendors can become too ambitious.

'It is in everyone's interests that we maintain a sensible gap, as the consequence of setting reserves too high is that it will choke the marketplace.'

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