1) Wholesale supply volumes remain down

When analysing the data up to the first half of April, supply volumes in the wholesale market remain marginally behind the same period in 2020 and behind expected activity at this time of year. Crucially, supply volumes are down compared to the period last summer after the first lockdown, indicating that available stock will be hotly contested for.

2) Average car prices have increased

The reopening of physical showrooms across the UK in the early parts of April has resulted in positive auction performance. While comparisons to 2020 are impossible due to the first lockdown, average wholesale car prices for the first 16 days of April 2021 are at £6,448, a massive £846 (+15.1%) increase compared to the same period in 2019.

3) Demand continues to improve

Demand continues to improve in April, supporting the market sentiment that the reopening of physical showrooms has created a requirement for fresh stock. However, a perfect storm of low supply and high demand could see prices continue to increase in the short-term until volumes pick up and the market can adjust.

4) CAP Clean and first-time conversions on the rise

Other auction metrics have also increased since the end of lockdown. Analysing the data for the first half of April and comparing to the same period in 2019, average CAP Clean performance is at 96% (+4%) and first-time conversion rates at 81% (+2%), indicating that buyers are returning to auctions to replenish stock sold since the reopening of their dealerships.

5) The LCV market boom continues

Throughout 2020 and the start of this year, the LCV market has been booming, with new records being set seemingly every month. This trend continued in March, with a new record average price of £9,578, 9 out of 10 vans selling first time, and a 26% month-on-month increased in volumes sold. There are no signs that things will slow down any time soon.


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