7:57 am, August 5, 2024
The second quarter of 2024 saw ‘frenzied’ trade-to-trade activity as dealers fought for the best used car stock.
That’s the verdict from wholesale marketplace Dealer Auction. Its analysis of Q2 revealed more auctions ended during the three-month period than the first quarter, and retail values of stock soared by 28%.
Its data shows dealers placed almost 230,000 bids on stock in the three-month April to June period, and over 34,000 auctions ended – a rise of 1.8% on the previous quarter.
Dealer Auction compared the first half of this year with the last six months of 2023 and found that the volume of auctions ending rose 5%, while the number of bids was up 12%.
The average sold price dipped versus the previous quarter (from £6,570 to £6,089) despite stock being the same age (9.2 years) and carrying comparable mileage (74,858 vs 72,832), but their total retail value surged from £101.4m to £129.6m. Cap clean performance was 100%.
Kieran TeeBoon, Dealer Auction’s marketplace director said: ‘The hunger for stock we reported at the end of Q1 remains palpable. We’ve again witnessed a frenzy of trade-to-trade activity with more stock listed and days to sell hovering at the 4.2 days mark.
‘The average vehicle profile continues to be older and with more miles than this time last year, a continuing indicator of the scarcity of younger models in the market.
‘Although the average sold price dropped marginally from £6,570 in Q1 to £6,089 this quarter and their Cap clean performance eased slightly, their combined retail value was almost £130m, a marked increase on Q1.’
TeeBoon added: ‘These metrics prove, once again, that the market continues to test even the most seasoned trader.
‘Strong retail values prove there’s plenty of profit opportunities to be realised but dealers are working hard to find and win stock. This is perhaps best illustrated by the 13% increase in email alerts sent and the 40% rise in single listing views we saw this quarter.’
In its Q2 analysis, Dealer Auction said that while alternative fuel used cars still represent a small proportion of the vehicles traded on its platform, the volume of EVs selling on Dealer Auction has grown 60% year-on-year.
‘The growth we’re seeing may be from a low base but hybrid and EV models are undoubtedly showing up increasingly frequently in our listings,’ said TeeBoon.
