The number of franchised dealers attending Manheim’s open auctions has doubled in the past 12 months. As the supply of three/four year old vehicles reduces following a decline in new car registrations since 2008, franchised dealers are facing an increasing challenge in sourcing good quality used stock to meet increased demand.
At the recent annual Vehicle Remarketing Conference, attended by 180 delegates, franchised dealers’ inability to source good quality stock was seen as the biggest problem the sector faces over the coming year. Nearly a third of delegates polled stated the inability to source stock was the biggest problem they faced in 2012.
Mike Pilkington, managing director, Manheim Remarketing said: “The increase in the numbers of franchised dealers attending Manheim’s open auctions has been evident since the beginning of 2010 but last year saw a significant jump in attendees. It seems that franchised dealers may have realigned their age/mileage policies to justify attending open auctions in such numbers in an attempt to source stock to meet increased demand for used cars. If the numbers of franchised dealers attending open auctions continues to grow at this rate then independent dealers will find they are facing more competition in the auction hall and online.”