Recent statistical findings from Leeds-headquartered G3 Remarketing suggest that the cars currently performing well at auction are bucking the industry trend for winter.
The company says that SUV and 4×4 sales are rising as expected, but the seasonal switch to these vehicles is not as sharp as in recent years. In fact G3 sales of other car types indicate that dealers are going against the grain. Bikes are holding up despite the changing season, and smaller petrol cars under the value of £5,000 are also performing well.
Conversion analysis reveals diesel stock has continued to prove popular too. This is perhaps surprising given the Government’s plan to introduce a ‘toxic tax’ on such vehicles ahead of an initiative to ban them altogether by 2040. However, it would appear that, as yet, demand for these vehicles still exists, certainly in the North, with diesel estates continuing to be G3’s best-seller.
Commenting on the trends, G3’s buyer services manager Alex Miles said: “Of course buyers are reactionary to the market and environment, so, the recent flurry of snow aside, the milder weather perhaps explains the softened switch to 4x4s and SUVs.
“But other statistics will appear surprising for this time of year. The mixture of vehicle types selling well suggests good growth potential for remarketers and dealers alike.”
Business development manager, Adrian Maclauchlan added: “In an industry where new car sales have been popular for so long, it is encouraging to see vehicles under £5k performing well.”
G3’s findings support recent prediction figures revealed by The Society of Motor Traders and Manufacturers. The SMTM has suggested that there will be a 4.7 per cent drop in new car registrations over the next two years, resulting in consumers looking towards the used car market to reduce their depreciation risk and overall financial exposure in times of economic uncertainty.
Miles believes that auctions will continue to help the used car market to further thrive. “The great thing about auctions is that buyers feed off each other,” he said. “When one or two begin bidding on certain vehicles, then often many more will follow their lead. Even vans and minibuses are flying in our Wednesday sales – in recent months we’ve continued to achieve 100 per cent conversion rates.”
G3 Remarketing holds up to fourteen online and physical auction sales each month, with Motability Operations one of the most recent vendors to have come on board as a client.