Dealers have an opportunity to source cut-price cars at auction after sellers were encouraged to realign residuals to reflect market changes.
Manheim Auctions reports that dealers are cherry-picking cars at auction, selecting low mileage, high specification, good colour models.
Andy Shepherd, Manheim Auctions senior group auctioneer, said: “A tough market makes life difficult for auctioneers, sellers and buyers. Sellers want to sell but find it difficult financially to accept lessor bids; buyers want to buy but find it difficult to pay the prices wanted by the seller because their retail market has declined.”
He believes sellers need to realign residuals, cutting prices to encourage first time sales.
“Unsold stock declines in value on a weekly basis, eventually leading to a loss of £200-£500,” he said. “To continue to convert a high percentage of first-time entries, sellers must be prepared to accept that most residuals have fallen.”
Manheim Europe, which is rolling out its vehicle inspection/certification scheme Certified Plus to its 19 auction centres in the UK, has appointed a new team to manage Kah Systems, its vehicle inspection business. Manheim operations director Alan Crouch becomes Kah Systems general manager.
He is joined by Kah founder Les Elliott, who becomes business and product development manager, and Glen Barker, head of product implementation.