Dealers are using physical rather than online auctions to bid on cheaper lower-grade used cars, according to Shoreham Vehicle Auctions (SVA).

Alex Wright, SVA’s managing director

A survey of buyers held during SVA’s 60th birthday week of sales saw many admit that the the buoyant used market was forcing them to buy lower-price NAMA grade 3, 4 and 5 cars with a view to refurbishing or reconditioning them.

With smaller independent used cars dealers often running their own workshops, it provides a quick way to turn around used cars and get them onto the forecourt quickly.

And physical auctions are key to being able to examine such cars properly and assess the work needed accurately.

“During our 60th birthday week we saw buyers that we haven’t seen since the start of the pandemic. It was good to listen to feedback from the smaller independent dealers to understand how they are dealing with this extremely hot used car market,” explained Alex Wright, SVA’s MD.

“Many admitted to NAMA grade 1 and 2 used cars being out of their price band which has meant bidding on the cheaper used cars that need work as they are confident of being able to add their own value. They are buying physically to avoid the risk of buying a damaged car without seeing it first,” he added.

“Smaller dealers are typically using their own cash to replace stock, so they have to be creative. Typically, they run their own workshops and refurbish their own stock. Online only auctions don’t work for this profile of buyer,” he added.