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Used car prices are firming up amid strong demand and on-line sales
publication date: Jan 6, 2011
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author/source: Robin Roberts
Trade
values are expected to rise during early 2011 as supply
constraints continue to force dealers to compete in the open market for the
best stock, according to CAP.
| | | | | The January edition of Black Book, the benchmark guide to trade
values, reports that exceptionally high auction conversion rates in
December were fuelled by a genuine appetite for stock among dealers.
Research during the early days of 2011 confirms that stock remains scarce
and ‘serious buyers' are already out in force.
CAP traces the first signs of the strong resurgence in trade demand back to
the severe weather during early December. Despite winter conditions preventing
many buyers from physically attending auctions, online bidding activity soared.
Retail activity has also been brisk, creating an immediate need to fill
spaces on the forecourt during January.
Black Book Research Editor, Mark Bulmer, said: "Buyers spent December
attempting to stock up and this was not only driven by the desire to beat an
anticipated January rise in values.
"Research during December consistently revealed a genuine appetite for
stock, underpinned by a positive level of confidence, to ensure dealers were in
a position to get the year off to a good start.
"There is also a widespread acceptance that buying will need to continue in
January and that they will need to pay ‘all the money' for the best stock
because it is so thin on the ground and everyone will be pursuing it.
| | BCA has released details of online
sales volumes for 2010, which surged past 100,000 units in the UK for the first
time on record.
In Europe, a further 89,000 units were transacted online by BCA, meaning the
company is fast approaching 200,000 annual online sales.
In the UK alone, the company sold 105,863 vehicles via online channels, with
the majority selling via Live Online and significant volumes were also recorded
on Buy Online and manufacturer online auctions.
Bid Now and Buy Now, which launched in Quarter 4, saw volumes climb sharply
with plenty of activity over the Christmas period, as BCA sold cars online
during the festivities for the first time.
The company offered over 500
cars in the Buy Now online sales format between Christmas Eve and the New Year,
with the BCA website attracting up to 2,900 professional trade buyers at peak
times.
Over 40 major vendors contributed stock for the Christmas period
from all market sectors. | | |
"For
example, major disposers entered 2011 with significantly fewer vehicles than
they began last year with."
Looking ahead to the rest of the year, CAP believes that supply constraints
are unlikely to ease in the short term. It is also noted that many dealers are
working hard to avoid low used car stock levels after they were caught short at
the beginning of 2009. |
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