8:03 am, August 20, 2008
AUCTION house charges are to rise, warns the RMI Society of Motor Auctions.
It seems they can no longer continue with the price-freeze that’s been in place for the past few years.
This means cars bought at auction are going to become more expensive.
As Louise Wallis, head of the SMA, explained: ‘Energy and business rates have both increased, as has the cost of insurance, labour and consumables. The 50 per cent increase in fuel prices since December last year has also made a significant impact on margins.’
‘The vehicle remarketing industry is a low margin, high turnover business, which is only sustainable from a low cost base.’
Auction houses have made big steps in becoming more efficient over the past few years. New and additional services have also been introduced, including specialist collection services, vehicle preparation, and IT-based bidding and other internet services.
But this is a low-margin business, reports the RMI SMA. Many can no longer hold off charge increases.
