Fleets entering cars into auction have been warned that demand is falling and buyers are becoming for more selective over what vehicles they are prepared to bid on.
“The message to vendors is simple - set realistic reserves and ensure cars are presented to market with full documentation.
"Also, invest in pre-sale preparation and minimise the amount of repair work dealers need to undertake so they can put stock straight onto the forecourt,” said the latest Manheim quarterly market report.
“On the issue of pricing vendors need to pay close attention to any not-solds and in particular take all provisional bids very seriously.”
The used vehicle market began stalling in April and is now is major decline.
The weakening economic climate is now impacting on retail sales and conversely beginning to affect the performance of the wholesale market, confirmed Manheim.
“Auction conversion rates have fallen by between 4% and 9% in May, dependant upon market sector and sale type, as the market has hardened.
“In some cases buyers are only replacing retail forecourt stock to avoid any over-stocking, whilst others are still prepared to invest speculatively providing all the usual boxes are ticked.”