Fuel/five: 5 things we learnt from The Gavel this week

1) Lockdown plans have caused optimism at auction

While we would have liked to have seen physical showrooms opening earlier than 12th April, having a date to aim for has added a spring to the step of our buyers. Conversion rates have increased significantly over the last few weeks and average prices are up. However, an imbalance between buyer demand and stock supply remains.

2) More buyers are returning to the virtual lanes

With the impending re-opening of physical showrooms and reports that retailers are seeing plenty of enquiries for vehicles, we are seeing many of our larger buyers returning to work and our auctions after spells on furlough. Demand is up, particularly in auctions that feature ever popular sub-£5k vehicles.

3) Online auctions remain popular

Manheim’s Simulcast platform has enabled buyers to keep sourcing stock remotely over the last year. Buyers have become very comfortable buying online and it’s created new dynamics with buyers attending auctions that were once geographically out of reach. Whether this will continue once physical auctions re-open remains to be seen.

4) LCV prices continue to rise

2020 was a record-breaking year for LCV auctions and that momentum has continued into the new year with yet another record average selling price in February, up £526 on the previous record and a massive 46.5% higher year-on-year. First-time conversions have remained healthy too with eight out of ten vans selling first time. Total volumes sold have increased 16%.

5) LCV vendors should react quickly to price changes

Market values has seen much change over the last year with supply and demand levels being tough to predict, but in the LCV market the recent CAP adjustments have brought values mostly in line with the current market. Vendors that react quickly to market changes will benefit massively in the short to medium-term by keeping buyers engaged with their stock.

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