Car valuation specialist Glass’s has noted a downturn in the
wholesale used car market over recent weeks, with managing editor
Adrian Rushmore calling the middle of September a “watershed” for
the industry.
“It coincided with a further reduction in retail sales, just
when the supply of trade cars was on the increase,” he said.
Go deeper with GlobalData
“Conversion rates at auction have fallen at least 10 per cent in
the last four weeks, with the result that more cars have been
swelling the ranks for the next sale.”
Rushmore explained that the expectation of continually falling
prices had put “trade buyers in the driving seat”, and that the
wholesale market would remain very difficult until the end of
November, when auction houses and rental companies are expected to
have reduced their inventories.
“There are concerns that if auction vendors hold out for
unrealistically high prices it will take longer for the backlog to
clear,” said Rushmore.
“Experience tells us that it is more likely for the leasing and
fleet companies to fall into this trap of holding cars beyond the
average 12 to 14 days.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“We think that vendors’ attitudes will harden when we move into
December because many are likely to close their doors for business
and not re-open until the New Year. This decision will be
based on the reasonable assumption that prices will increase at the
start of the year.”
