Sellers see values improve - business wins bring more choice

British Car Auctions (BCA) is reporting record volume and conversion rates in January, on the back of a number of business wins and sustained buyer demand. BCA sold more cars and vans in January 2009 than in any previous year, despite the relative shortage of stock from fleets, leasing companies and dealer sources.

Massive buyer demand for BCA’s stock saw the entry to sale figures climb from just below 80% before Christmas to an average in excess of 90%. On the last Friday of January, BCA recorded a group average conversion rate of 92% - the highest recorded since 1946 when the company was founded.

BCA’s latest Pulse figures show the average price at BCA rose for the third month running, following an extended period of price pressure throughout most of 2008. BCA’s average used car values rose by £300 in January compared to December while performance against CAP improved by nearly seven points to record the highest figure in over a year. The CAP performance of 97.23% was over a point ahead of January 2008 – which in itself was a strong month.

BCA’s price conversion and speed of churn has seen the company win incremental volume from existing customers often at the expense of other auction operators and remarketing channels, including a substantial part of the GE Capital used vehicle volume, alongside Mills Group and Eden Group. Business renewals include Renault Retail, Vertu, Hitachi and GM Vauxhall.

Blackbushe – the UK’s biggest and busiest auction centre – recorded over thirty 100% sales for customers in January, including VW Financial Services, Inchcape, Lex and Peugeot, with Masterlease achieving seven 100% conversions in a row.

BCA Glasgow recorded its best volume result for nearly two years, while BCA Nottingham sold over 1,000 vehicles more in January 2009 than last year. Other record results were achieved at Bridgwater, Brighouse, Newcastle, Preston, Paddock Wood and Peterborough.

The number of vehicles purchased by dealers via BCA’s Live Online service has also risen sharply in January, even before the bad weather hit the UK, making traveling hazardous. January volumes were up on the same period last year and an increasing number of customers have added Live Online to their sales programme.

And it is not just cars. Both Measham and Blackbushe reported exceptional demand for LCV’s with Blackbushe achieving sales volume records on three consecutive weeks during January. The new weekly LCV sale at Bedford every Monday offers a new platform for sellers and a wide cross-section of desirable vans for buyers.

Further proof of the renewed interest in used cars came via the latest web analysis of BCA’s site. BCA gained another Hitwise Top Ten award as one of the most visited UK auction sites and took a massive 54% of all the web traffic visiting car auction sites.

BCA’s UK MD, Andrew Hulme commented “Throughout January, BCA sold an average of 13,000 vehicles every week with conversion rates climbing to in excess of 90% - significantly higher, year-on-year.”

He continued “Used car values fell sharply in 2008, but the rate of decline slowed in November and December. There has been a substantive realignment of prices and what we are seeing now is an improvement in values from that base. This suggests that motorists are now more confident to buy used cars – because they represent exceptional value for money.”

Hulme continued "BCA’s retail dealers are telling us that consumer footfall has increased significantly in the New Year and used cars are selling in greater numbers. This unexpectedly high level of retail activity is driving the churn and strong prices in the wholesale market. The real test will be over the coming weeks and will depend on any sustained retail demand those dealers experience."

Hulme concluded “The attractiveness of BCA’s sales programme has in itself attracted the best buying power from the retail and wholesale markets. The combined effect of these two forces has produced exceptional price conversions and churn for BCA’s sellers. Sellers have been the big winners at BCA in recent weeks and – with this in mind - we will be announcing a further major account award very shortly.”