Leading auction company BCA reports buoyant January trading conditions but suggests the used car market is less secure going forward. Tony Gannon reports. January trading conditions have exceeded many expectations.
In the fourth week of 2008 we sold vehicles totalling L78 million in value; the corresponding figure in 2007 was L55 million.
The demand has been nationwide – BCA’s long-established Belle Vue auction centre sold a record 702 cars in one day.
While BCA Blackbushe sold a Ferrari F430 F1 Spider for L133,500. Less exotic cars and commercials have been in demand, too.
January is traditionally an active month in the trade. However, Easter comes early this year and that often proves to be a watershed in demand.
With the new plate on March 1st likely to stimulate additional volumes of business from fleet, lease and dealer sources, buyers will have even more choice later in the spring.
Even with all this current activity there is an underlying softness in demand and dealers are reflecting this by showing less interest in poorly presented cars and vans.
It is crucial for small businesses, thinking of selling their vehicles, to ensure pre-sale preparation is excellent. It’s also important to price vehicles correctly as volumes rise.
It is crucial to set reserve values that accurately reflect the condition, history, mileage, specification and current market conditions.
If market conditions tighten, condition gets even more important.
Additional information
It was very pleasing to note that we won the 2008 BusinessCar Award for Best Auction Company. It is the 14th time BCA has won this award, which is voted for by readers of BusinessCar, a fortnightly magazine for the fleet, leasing and company car sector – a title unconnected with Business Car Manager.
