Market Commentary - 14 November 2017

Every day our Valuations experts are in the field watching the market. Here is their latest wisdom.

Published: 14th November 2017

Every week our Valuations experts are out in the field at Manheim Auctions, researching the wholesale market. Their extensive networks in the automotive industry also keep them plugged in to changes in retail demand. The knowledge they gather informs the valuations in Seller Advance, and Cox Automotive Data Solutions’ work more generally. Here we distill their wisdom in to this round-up.

Summary

 

Seasonal pressures on the market

Market conditions continue to toughen due to demand in the retail channel easing and a slight increase in volumes in the wholesale channel. This has been further compounded by an increase in late-plate manufacturer vehicles sold into dealers. Although, in most cases, these pressures haven’t filtered through to effect wholesale prices.

 

Seasonal winners and losers

The expected changes in seasonality have seen some winners and losers. Demand for 4x4’s has increased but convertible values have decreased.  

New car incentives continue to pressure late plate used car values

Setting the correct late-price used car price requires more focus than usual due to the continued new car incentives offered by some manufacturers. For example, most franchise dealerships are offering a minimum of £2,000 for part exchanges. This, combined with the increase in late-plate volumes has created a slight downward pressure on values.

Improvement in auction conversion rates

While an easing of buyer demand contributed to a weakening in conversion rates throughout October, we have seen a slight improvement over the last week.

For a detailed view of price movements by vehicle sector, see the attached report below.

The Valuations team is Daren Wiseman, Kevin Hope, Paul Raynes, Nick Key and Trevor Heathcote.

Watch our blog for their next update. To learn more about how our unique vehicle market insight can help your business, please get in touch, we'd love to chat.

 

cox-automotive-weekly-sector-performance-2017-11-14.pdf

cox-automotive-weekly-sector-performance-2017-11-14.pdf

Download pdfDownload pdf file

Our Blog for the latest news, views and market intelligence.

image-1594

Big Data LDN 2017: Cox Automotive – Big Data Journey

Allison Nau, Managing Director of Cox Automotive Data Solutions, spoke at Big Data London - watch the video here.

Read more
Data 17th January 2018
image-1590

Blue and White paper - GDPR and the automotive industry

We outline what is new vs familiar, and offer practical steps you can take today

Read more
Data 7th December 2017
image-1583

Cox Automotive Data Solutions sponsor the AM Magazine Data special edition

In November Cox Automotive Data Solutions sponsored the Data special edition of AM Magazine - find out what we talked about.

Read more
News 7th December 2017
image-1582

Why Digital Analytics Matters

Digital Analytics & Your Automotive Business - Modix explains why analytics is crucial to the dealership of today.

Read more
Data 28th November 2017