Cox Automotive‘s retail and stock funding businesses (Motors.co.uk and NextGear Capital respectively) saw growth in October, while Manheim, its wholesale outfit slowed.
Motors.co.uk achieved a 5% average increase in volume year-on-year, with average sold prices up, growing 2.3% from September to £14,127 (an increase of 12.8% year-on-year).
Head of External Relations at Cox Automotive, Philip Nothard, commented “The positive growth for Motors.co.uk suggests that dealers are preparing for the winter quarter by increasing stock on their forecourts, and also points to part-exchanged stock from the September plate change trickling through to retail.”
Cox’s wholesale stock funding business, NextGear Capital, experienced recorded growth once again, as the average cost per unit hit its highest in 2017, at just over £7,000. While volumes at Manheim’s physical and online car auctions were stable, posting a 0.5% increase month-on-month. However average sold price fell by 10.5% (from £7,271 to £6,498). Average vehicle mileage was up 8% to 59,209, since September. Cox’s trade-to-trade site, Dealer Auction, saw average vehicle values decrease, down 4.8% on September to £4,474.
Nothard continued, “The data confirms that there were patches of healthy consumer demand throughout October, but we have not seen the increase in unit activity that the wholesale market expected and the majority of dealers had hoped for.”
“From a retail perspective, although our data shows that dealers have strong stock levels, there is a trend towards less attractive stock becoming more difficult to sell. Smart dealers will be looking at what they can do to ease prices to counter this.
“Looking ahead to November, early indications point to a slight increase in vehicles hitting the auctions and we expect this to be bolstered by pre-Christmas seasonal consumer demand later in the month.
Nothard concludes on an optimistic note, “By the end of the year, we expect volumes and prices to regain the levels seen earlier this year, as dealers stock up for a potentially busy first quarter of 2018.”
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