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Manheim sees gulf between vendors' and buyers' valuations

"The market this week is still somewhat erratic. We have seen some good sales, which have been encouraging and some poor sales, which have been frustrating. Added to which, there have been some very good individual results and some that have been 'difficult to understand'.

National fleet vendors who have a varied amount of stock, priced at giving buyers an incentive to bid and who are totally 'in tune' with today's turbulent market place, are the vendors who are achieving the most successful results.

Average Cap clean figures are levelling out at around 95% and in general, most bread and butter makes and models are around Cap average figures. However, most seasoned buyers are purely using Cap and Glass's for which they were designed - as a guide - and valuing each vehicle on its merits.

There is still a market and there are buyers still willing to buy in volume. But there is a gulf between what the buyers value cars at, in this 'day to day changing market' and at what the majority of vendors value their cars. When both parties become comfortable with a levelling in price, then the market will be up and running again.

Vendors who are consistently offering 100,000 mile plus cars of any 'ilk' are probably finding the market the hardest. The truth is that to value these vehicles realistically they need to look at 'below average Cap and less'. There is virtually no chance of selling vehicles in the auction hall at Cap average price for a 100,000 - 150,000 mile car. Whilst I appreciate that the bids made on these cars may not put a smile on the accountants faces, these bids are the realistic value in today's market place and more likely tomorrow's."

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