Cox Automotive has provided an update on its UK retail and wholesale businesses, characterising the marketplace as steady over the final quarter of the year.
While Cox’s Manheim auctions saw a month-on-month decrease in November compared to October, the firm said that this was in line with expected seasonal shifts. Year-to-date figures for Manheim show volumes within 0.55% of 2016 (Jan-Nov 2016 vs. Jan-Nov 2017). The average sold price through Manheim held steady at £6,431 (-0.7%), a 6.3% uplift when compared to the same period last year. The average mileage of vehicles sold also stood steady at 58,779 (-0.7% on October). Cox’s retail website, motors.co.uk saw average sold prices remaining within 0.5% of October figures, and 12.4% up on November 2016, at £14,274. By November trade-to-trade online auction platform Dealer Auction reported a substantial 7.4% year-on-year increase in the number of vehicles sold.Cox’s NextGear Capital experienced a 5.8% dip in units funded throughout November.
Philip Nothard, head of external relations at Cox Automotive said, “The SMMT recently revealed that new car sales were down 11.2% in November. This contrasts sharply with the story in the used car sector, where data demonstrates that the market is a continued area of focus for dealers, with great stability year-on-year. “Our data shows that in auctions, the car supermarkets are continuing to buy and this is driving the market forward, while franchise dealers appear to be a little more cautious, which perhaps reflects their focus on a slowing new car market.
“Looking ahead, we anticipate that this will level out in 2018, with used cars continuing to be an area of focus for all dealers, as we move through the early quarters of next year.”
With regard to diesel’s performance, Nothard said, “It’s also interesting to note that despite a significant downward trend in the new car market for diesel, this has yet to fully filter in to the wholesale used car sector. Diesel volumes through Manheim are up 1.33% year-to-date, and on course to achieve expectations set at the start of the year, which suggests there is a continuing appetite for diesels among dealers in the wholesale auction market.
Nothard admitted that the retail business is now beginning to see the effects of general consumer sentiment, “However, on the consumer side, it looks as though behaviour is starting to change. Data from motors.co.uk shows that views for diesel vehicles are down year-on-year, (-2%), despite there being an increase in their share of total stock (+3%).”
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