Strong demand for quality used vehicles, including LCV’s, across all sectors is driving wholesale auction values to fresh highs, according to online auction, CD Auction Group.
In the first week of October, CD Auction Group successfully sold a record number of vehicles at an average of 102.7% of CAP Clean, the industry benchmark for value. The average conversion rate across all sales was also up, at 85%, and reached 90% for one branded sale.
The record results come on the back of a successful August and September, and Roger Woodward, managing director of CD Auction Group, predicts the wholesale market will stay buoyant in the run-up to Christmas.
“A shortage of good quality stock, coupled with the fact that retail used car sales seem to be picking up, has brought buyers back into the market,” he said.
“The major supermarkets and dealer groups are back buying for stock and bidding is very competitive. This is not just local; with our online platform, we are seeing buyers from across the UK, the Republic of Ireland and even Cyprus and Malta.”
Fleets should take advantage of the current market to maximise residual values after a turbulent year, according to Woodward.
“Fleet operators have a window of opportunity to remarket between now and, say, late-November to maximise value and refresh their vehicles. After that, the usual seasonal price drops will apply,” he said. “At the moment we see none of the oversupply that appears to be worrying other operators in the industry.”
A significant factor in the rising demand for quality cars is the strong following that CD Auction Group sales are attracting from professional buyers.
“It’s clear that buyers are following vehicles from particular vendors where they know that cars or vans have been properly maintained and prepared for sale,” said Woodward. “Because we operate in an online environment, these cars can be grouped and sold together rather than scattered all over the country. It means we attract maximum bids.”
CD Auction Group now holds three online auctions a week with monthly branded sales for clients such as BMW, BT Fleet and Venson Automotive Solutions.