1) The wholesale car market is HOT
Over the past two months we have seen an unbelievable uplift in prices on virtually all makes and models of cars coming under our gavels. CAP have increased values across the board by just over 10% and with the number of vehicles coming up for sale, I can see another substantial increase as we move from July into August.
2) Buyers are taking a creative approach
The only caveat is older, less desirable product with higher mileages continue to be a challenge. But we have seen many car supermarkets and dealers buying the lower grade product in the hope of actually making a ‘silk purse from a sow’s ear’ as the stock they really want has become less and less available.
3) Wholesale prices have exceeded retail
Some of the prices that we have seen in the auctions have actually exceeded forecourt prices at times. Dealers really do need to be on their toes at the moment to make sure they are not underselling because that is quite easy to do in this fast-flowing market that we find ourselves in.
4) LCV selling prices are flying high
I am delighted to report that we smashed our previous record set in a single month for average selling price, now over the magical £10,000 mark and up to a mind blowing £10,222. To put this into context, our average selling price in June 2020 was £7,659 and June 2019, it was £5,706… representing a 33% on prior year and 79% on 2019 measures. Staggering!
5) LCV buyers are there to do a deal
My advice to (LCV) vendors would be to get the green light on and let buyers know that the stock is there to be bought, it makes a HUGE difference to a sale and those that react quickly will always be the ones to reap the rewards on both performance and first-time conversions.