Accurate valuation is the key to car auction sales

It is crucial that vehicles sold at auction over the next few months are presented and priced correctly given the anticipated surge in availability, according to the Society of Motor Auctions (SMA), part of the Retail Motor Industry Federation (RMIF).

The March plate change traditionally accounts for just under 20 per cent of annual new car sales and will lead to a large influx of cars into the auction wholesale market as fleet disposals and part exchanges work their way through the industry.

There will inevitably be additional pressures on prices going forward against a more uncertain economic outlook. Greater de-fleet and part exchange volumes expected over the next few months present a great buying opportunity at auction, but equally, greater competition makes it more important than ever for vendors to present and price vehicles correctly.

To maximise returns from vehicle disposal, the SMA stresses that it is vital to:

Ensure vehicles are individually appraised
Prepare and present vehicles in the best possible condition
Value each vehicle accurately and set a reserve that reflects condition, history, mileage, specification and current market conditions
Ensure V5s, MOTs, service histories, spare keys, including master key where relevant, are present at the time of sale
Manage and take action on all unsold stock before it becomes over-aged incurring additional re-cleaning, transportation and storage costs