Fleet News

Unsold stock is an opportunity not a threat, says Manheim

As the wholesale van market enters its traditional summer slowdown, compounded this year by the Royal Jubilee, European Championships and the Olympics, the challenge of unsold stock in the wholesale van market must be addressed head on.

Stock should be subjected to pro-active auction house and vendor pricing to ensure optimum values are returned in the quickest possible time.

Vans that fail to sell, or even attract a bid first time, should be considered on a case by case basis. Mileage, condition, specification and duplication of stock, or worse still a combination of all four, will result in bids that are behind guide values.

The solution is not simply to reduce reserve prices across the board but to see what the market is doing by tracking the activities of other vendors and pricing stock accordingly.

James Davis, director of Commercial Vehicles, Manheim Remarketing, said: “We last experienced a similar set of seasonal market pressures in 2011.

“Whilst the state of the economy is well documented, the last time the Olympics were held in the UK was back in 1948.

“We’ll have to wait and see the extent to which Olympic fever grips the UK, but it will clearly continue to impact retail activity.

“In a softening market the price guides have a challenge because if they simply apply wholesale price reductions across all segments, they could be seen to be starting a downward run on the market.

“That would help no-one and would not reflect the true van stock market. Vendors should follow the example of the retail van market. Here dealers track their competitors’ pricing online for specific models. They will adjust prices based on this for pockets of stock.

“No dealer would simply devalue every van ticket price based simply on a seasonal summertime lull. Buyer activity will be driven into, or out of, auction sale sections in accordance with the quality of stock on offer and reserve pricing strategy.

“I would therefore encourage vendors in the wholesale market to consider the activities of other vendors. Vendors who do so will make their own luck.”

Click here for remarketing best practice and procurement insight

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee