Pent-up demand driving online auction successes, says Cox Automotive
Pent-up demand heralded as the principle reason for strong performance across Cox Automotive’s online auctions.
First-time conversions, CAP Clean performance and average prices have all risen year-on-year according to the results of Cox Automotive UK’s latest online-only auction programme that has run since 1 June at all 15 of its sites.
First-time conversions increased 84.8%, with a 6.7% year-on-year rise compared to 2019, while CAP Clean performance has increased 3.9% year-on-year from 93.02% in 2019 to 96.94% in 2020 for the same period. Average prices also rose 6% – from £6,062 in 2019 to £6,426 in 2020.
Commenting on the figures, Philip Nothard, customer insight & strategy director for Cox Automotive UK, said: “Post-lockdown across the UK, we’ve seen strong demand for all sectors. Standout performance has been seen in older part exchange vehicles with sensible miles and a lengthy MOT, with some making close to double the guide price.
“Online buying has undoubtedly made it easier for dealers to bid against their ‘mates’ whereas in the past it could be said that they operated a ‘one for me and one for you’ scenario. Current strong, pent-up demand is demonstrated by the volumes of buyers online, with many sales seeing over 300 active buyers at any one time. In fact, for many of our evening sales, we are now seeing over 200 live bidders which is incredible.
“In the recent dealer sentiment survey issued in the early days of lockdown, two-fifths of dealers said they had increased their use of digital auction platforms due to lockdown, with nearly 50% of those indicating this will be a long-term change. While 20% of dealers said, they are going online in the short-term and intend to return to physical as soon as possible, as few as 7% stated they still have no intention to buy digitally.”