10:11 am, August 21, 2015
JUST how much of an impact do things such as Christmas, bank holidays and plate changes have on used-vehicle prices?
In the wholesale markets, values are driven by a balance between supply and demand and if some buyers are enjoying a holiday, that might have an effect.
The reality is somewhat different, however. The broader seasonal patterns – busy early in the year, slower post-Easter and into the summer, then picking up again in the early autumn – are a little less defined than they once were.
Thanks to the effect of digital platforms, the used-car trade rarely has any down-time these days and with increasing volumes of business being conducted over the internet, you can technically buy a ‘virtual’ used car at any time of the day or night, 365 days a year.
The registration plate changes in March and September traditionally stimulate new sales and plenty of dealer part-exchange stock and ‘fresh-to-market’ fleet vehicles will reach the remarketing sector.
Then there is an element of seasonality attached to specific market sectors. The sales of convertibles tend to do better in the spring and summer. In contrast, average values for 4×4, SUV and off-road vehicles typically climb when the weather is worsening.
Of course, information about trends and demand is the key to success in any business. In the remarketing sector, we are using business intelligence data and analytics to look at the dynamics of the used-vehicle market.
It allows us to advise customers on the optimum times to sell and the most effective route to market, as well as ensuring our buyers have all the information they need to plan their purchasing in the shape of appraisals, condition reports, images and even video.
Real-time access to a wide range of data can help sellers keep the stock flowing, and buyers to make profitable business decisions using the most up-to-date information – and that is good for everybody.
Who is Simon Henstock? Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.
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