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G3 survey reveals dealers’ 2018 reliance on auctions

G3 survey reveals dealers’ 2018 reliance on auctions

New statistics from Leeds-based independent car auction brand G3 Remarketing suggest that dealers still prefer purchasing stock from auctions in person, despite increasing digital alternatives.

The company’s findings reveal that physical auctions still hold the appeal that they always have done – and predict that traders will still want to see, touch and hear vehicles before they buy in 2018.

80% of straw poll respondents said they preferred attending physical, in-house sales to source vehicles for their forecourt, despite other options being available.

Commenting on the trend, G3’s buyer services manager, Alex Miles, said: “Physical auctions allow a dealer to inspect, touch, see and hear the vehicle before placing a bid, which means they can get a feel for the car before purchasing it.

“While bidding online works for many dealers – and G3 remarkets plenty of vehicles in this way – it isn’t surprising that the majority prefer to buy stock in-hall.”  

A recent survey by the Society of Motor Manufacturers and Traders (SMMT) said that used car sales have fallen by 2.1% when compared to 2016’s figures. However, G3’s findings paint a brighter picture.

Supporting G3’s previous findings on the types of cars performing well at auction, the company’s recent poll also revealed that used vehicles under the value of £5,000 continue to be popular.

Business development manager, Adrian Maclauchlan said: “In an industry where new car sales have been popular for so long, it is encouraging to see vehicles under £5,000 performing well. In particular, we have seen smaller petrol cars in great demand at our sales.”

Additional results suggest that quality, price and selection of stock are the three most important factors reported by buyers, when it comes to sourcing vehicles for their forecourts. Plus, the two biggest challenges car dealers believe they will face in 2018 were revealed to be the potential slowing of customer spending, as well as the possible fall in the demand for used cars.

Alex Miles believes that auctions will continue to play a huge role in ensuring that the used car market thrives over the next 12 months.

He said: “Having bidders together in an auction hall creates a real buzz that’s hard to beat. Placing a bid online is quick and convenient – especially if you can’t make it to an auction in person that week – but for many dealers it doesn’t offer the same experience as being there.”

G3 Remarketing holds up to 14 online and physical auction sales each month, with vendor Motability Operations being one of the most recent clients to have come on board.

06/05/2018

 
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