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Frenetic bidding as auctions buck tradition

Manheim found there was a marginal fall in consumer demand for used cars in August, as there had been in July, from 11.1 average retail sales per month down to 10.8 sales. 

Although this represents the sixth consecutive fall in used cars sales, over the last four months sales have only fallen 0.8 of a unit. 

John Simpson, managing director, Manheim Retail Services, said: “This clearly represents relative market stability compared with the previous 12 months of volatile fluctuations in both demand and sales.

Although month-on-month test drive to sales conversion rates have actually dipped from 33.7% in July to 32.6% in August, those dealers that are still making hay while the sun shines are those aggressively marketing their stock both on and offline and have already taken the opportunity to review sales processes and implemented robust sales lead management systems.” 

Manheim’s analysis of the wholesale market showed August bucked its tradition as a quiet month. Mike Pilkington, managing director, Manheim Auctions & Remarketing, said “packed auction halls throughout the UK and frenetic bidding” meant wholesale sales values of stock for retail increased by £115 to £8,178. 

First time conversion rates for retail stock remained above 90%. Average values of part-exchanges increased again from £2,158 to £2,243 for a typical 89 month, 76,000 mile vehicle and average first-time auction conversion rates for these vehicles were up to 87%.

“Those dealers looking to maximise values of unwanted part-exchanges should be adopting an auction policy in the current market,” he added.

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