The Gavel - July 2024

Wholesale market opinion from our resident car, LCV and HGV auction experts, Kevin Blincowe, Stuart Peak and Chris Mynott.

Kevin Blincowe - cars

In my last update, I spoke about the development of potential auctioneers through our Auctioneer Career Framework. Before diving into business updates, I’d like to share some news on that front.

Manheim Birmingham graciously hosted us for a day, offering an excellent venue with strong physical attendance and outstanding vendors showcasing a diverse model mix. These ideal conditions allowed our candidates to experience how an auction operates firsthand.

The team members in this framework come from various roles within the auction group, each with unique experiences. Here’s a brief introduction to them—if you see them around, be sure to say hello!

James Cooper (Manheim Leeds): An ambitious young man who has covered almost all roles in an auction. He’s also a budding social media star, promoting Leeds on LinkedIn and Facebook.

Dylan Slocombe (Plymouth): Following in the footsteps of his father, James, a long-time member of the Group Auctioneers team, Dylan has quickly made his mark on this framework.

Kieran Gibbs (Northampton): Northampton's payments coordinator and a confident individual who frequently seeks tips and pointers. He’s also active on LinkedIn, showcasing his journey.

Dan Fanning (Manchester): Vendor Account Manager who has long aspired to this opportunity. Inspired by Andy Conde, he’s eager to take the mic and gavel.

Katie Holl (Manheim Birmingham): A talented Simulcast clerk who regularly assists me at the rostrum. Katie has an exceptional memory for buyer numbers and is adept at spotting bids, key skills for an auctioneer.

During the day, the candidates conducted a valuation exercise with impressive accuracy, observed buying patterns and selling styles, and even took to the mic in a mock environment. We wrapped up with case studies and scenario work, challenging them with tricky situations they might face on the rostrum.

This group shows great promise, and I’ll be working with them closely over the coming months to ensure their success. It was fantastic to have them all together to share experiences and find common ground. Keep an eye out for them as they step up to the plate.

Looking back to the market in June, we saw a balance between supply and demand, with enough stock to keep forecourts replenished. Despite no significant spikes in demand, due to factors like football and elections, we maintained healthy conversions and strong CAP performance. Consistency was key, with conversion rates, CAP, and buyer numbers aligning with our expectations. Positive market reports indicated sustained growth in the used car market this year.

As June progressed, the numbers began to shorten, leading into July where demand outstripped supply, firming up prices, particularly for retail-ready and sub-prime cars. The market strengthened significantly, especially after the conclusion of political events and the Euros.

July also saw the launch of new vendors like Howards in Bristol, Holden in Colchester, and Taylors in Northampton. It's always exciting to welcome new vendors and I look forward to what the rest of the year holds.

Stuart Peak - LCVs

Looking out over the busy auction hall here at Shepshed today, all is good in the CV world! The sun is shining, the roads were clear this morning, and we have a stack of quality vans for sale. The sound of a live auction remains unbeatable for me. I love watching buyers darting about looking for their next profit opportunity… you can’t beat it! Whilst my microphone and gavel are staying in my bag today, the auctioneer in me always wants to get up and sell regardless.?

Reflecting on the market in July, I have been pleasantly surprised by how positive it has felt. Now that the general election is out of the way and we have a new government in place, buyers seem to have regained some confidence that was missing in May and June.

Many have reported that retail activity has also improved. As we know, Q2 tends to be the most seasonal time of the year from a market perspective and let’s be honest about it: there is currently more stock in the CV world than anything we’ve seen for the past five years. As a result, we have seen prices soften over the course of 2024, but we must not forget that average selling prices are still way ahead of where they were five years ago. Average selling price was still 28% higher in Q2 2024 vs Q2 2019.

First-time conversions have improved by over 5% throughout July vs June, and the number of days to sell has also been reduced by two days, demonstrating the positivity in the marketplace I mentioned. The average selling price has also improved by ￡93 vs June which is another positive. July is set to be our strongest month for sold volume since 2019, which is also very pleasing to see. Now we are firmly in the summer holiday period, it will be interesting to see how August plays out. My feeling is we will see consistency and the market will remain stable.?

I will sign off this month’s blog by thanking everyone who attended and purchased at our 9th?annual offsite premium sale on behalf of Novuna Vehicle Solutions on 5th?July. The atmosphere at Novuna’s Trowbridge site was electric and over ￡7500 was also raised for Shelter on the day. As always, the team at Novuna were incredible hosts and we thank them greatly for their hospitality!

Signing off this month, we wish you all an enjoyable summer and hope that you get some time to relax in between our busy sales programme!

Chris Mynott - Truck and Plant

As July comes to a close, it brings some more fantastic news for team HGV – another record month, sold volumes up 12% versus last month and a HUGE 77% over the same period last year – June saw a 48% increase versus prior year also so a simply superb couple of months!

As predicted, inbound volumes remained a little lower throughout June and the first couple of weeks of July, but such was the stock we had in the system already, we have been able to keep the sale numbers around the 150 per auction mark, which has been great to see. First-time conversion rates are sitting at 65%, which given the way the market is currently, I’m pleased with.

July also saw us launch a partnership with an external HGV and plant marketing specialist. This gives us access to a massive database of over 10,000 more buyers from all corners of the world, so we’re really looking forward to seeing some of them engage with us and make their first (hopefully of many!) purchases.

Meanwhile, June saw us exhibiting at the Road Transport Expo at Stoneleigh Park for the first time. This was a fantastic three-day event for everyone in the HGV sector – Rob and I were in our element, as were the team members who joined us, learning about all things truck and trailer. Our stand featured a WW2 truck with a unique story, owned and fully restored by Rob and his family?- a superb time was had by all, some great connections made, and conversations had. We have already seen some stock off the back of some of these and there is much more to come too! We’ll be back next year for sure!

And so into August we go… holiday season now firmly upon us. I’m not expecting much change in the auction arena, just the usual summertime steadiness with stock profile remaining largely the same. Although, as I write this, I’m looking at a HUGE batch of late-plate Enterprise kit coming our way very soon indeed, which should spice things up a little for the next month!

The Gavel is taking a break in August and will return in September.