Wholesale Price Rise is Good News for Sellers

SURREY, UK – January 16, 2009: BCA reports huge interest in the first full week of trading as buyers compete strongly for cars and vans on offer at auction. The company’s Fast Start campaign ensured BCA was in a position to deliver a comprehensive sales programme to customers in 2009.

In the first full trading week of the year, BCA sold nearly 13,000 vehicles with conversion rates running in excess of 80%. Conversions are ahead significantly, year-on-year, and average values have crept up from December at £4,895, but remain around £550 behind 2008 figures over a similar period.

BCA centres nationwide reported exceptionally high footfall in the first week of 2009. Blackbushe attracted up to 1,000 people each sale day in the first week and set a new sales volume record in the LCV sale on Thursday 8th January, selling over 400 vans. The first sale at Brighouse on 5th January attracted well in excess of 500 people, with nearly 200 different buyers purchasing on the day. BCA Nottingham, Belle Vue Manchester and Measham all reported higher than expected attendances throughout the week, and increased bidding activity from December.

BCA UK Managing Director Andrew Hulme commented “BCA’s Fast Start campaign has produced some outstanding results, typified by incremental sales for Lex and BMW that recorded 100% sell outs and sales for LeasePlan, Audi and Ford that converted up to 96%. But this is not out of the blue, as there were signs of improvement late in 2008”

He added “We saw a stabilising of the market in the second half of November, and a firming of demand in the £2,000 to £5,000 price sector. Sellers realised that it was imperative to sell their stock. Those that prepared their vehicles to a high standard, valued them accurately and ensured the right documents were present attracted large crowds of buyers, higher conversions and improved prices relative to the market norm. Sellers utilising BCA Live Online enjoyed even greater buyer support and improved residual values.”

Hulme continued “This trend continued into December with values in many product sectors continuing to firm and BCA and its customers had a strong close to the year. We achieved significant new business wins that delivered an even more appealing selection of stock into the auction halls and buyers responded accordingly.”

Hulme added words of caution, however, saying “The first few days of the New Year are like a honeymoon period and we all know they don’t last forever. Professional retail buyers were starved of vehicles over the festive season, and are currently busy replenishing their forecourt stock. This has given an exceptional boost to conversions and prices. The real test will be over the coming weeks and will depend on the retail demand those dealers experience.”

“Our dealer customers inform us there is currently a disconnect between retail activity, which is slightly better and wholesale activity, which is significantly better. It is quite possible values will settle back over the coming weeks.”

Hulme concluded "That’s aside, there has been a huge amount of interest since the turn of the year and currently we are selling over 80% of the vehicles we offer. We were prepared for uplift in business, but this has even exceeded our expectations. Used cars are now exceptional value for money and professional buyers looking to buy the keenest valued stock should certainly be in the market now, to ensure they don’t miss out.”