High volumes
Every Sunday night, BCA despatch a series of emails reminding me that the weekend is all but over and that tonight’s red is tomorrow’s hangover. One thing that struck me the other night was the volumes BCA were holding.
It’s been 10 years since somebody flicked a switch and the country plunged into recession. Back then, volumes dipped from an average of 17,000 vehicles to 14,000 vehicles. Good stock was a struggle to find and even more of a struggle to sell profitably. Your financial status of wealth went from going for a run in a Range Rover to being seen in the great Northern Rock Bank Run queue.
Recently, BCA stock broke the 25,000 units barrier by quite a way. The thing is, while the preceding month hadn’t been a particularly good one for new car sales, it hadn’t been bad for the used car trade, which was unusual.
So where exactly has this high volume of vehicles come from, especially when you consider BCA hasn’t taken over any rivals, nor have any rivals disappeared from the scene? In fact, I’d argue that, given the surge in online dealer auctions, more swappers are being held back by dealer groups for trade purposes.
Whatever the answer, such enormous volumes cannot be great for residuals. If the auction houses are full, then the used trade cannot be confident. They’ll also be exceptionally picky, meaning that only the very best examples will sell.