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

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