Stock availability remains a challenge in the wholesale market, with some reports of up to a 20% decline in stock volumes for this time of year.
This is according to Cox Automotive’s latest market tracker, which revealed a 2.4% year-on-year decline in the wholesale market – marking the lowest February total in the past five years. Only December totals have been less during that period.
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First time conversions in the wholesale market increased for a third consecutive month, rising 3.8% to 88.1%. Average age and mileage are also down year-on-year, 2.5% and 4.1% respectively, reflecting the start of a move to dispose of and renew vehicles slightly earlier in the process.
Data from NextGear Capital, the stock funding arm of Cox Automotive, suggests similar trends, with the average price funded in February increasing to £7,902, up 3.6% year-on-year. Volume of vehicles funded was down 2%; however, the value increased 1.5% year-on-year, again indicating stock shortages are pushing prices up across the board. Average days in stock fell 2.3% to 61.5 days, implying when good quality stock is on the forecourts, it doesn’t hang around for long.
Philip Nothard, customer insight and strategy director for Cox Automotive, said: “We are witnessing a fundamental shift in the global automotive sector, with much of the commentary in the past decade about the electric vehicle horizon, automation and Industry 4.0, and Mobility as a Service now making itself felt in the auction halls and on the forecourts across the country. While no one could have predicted the specifics of the coronavirus, or exact environmental policy announcements, the direction of travel has been clear for some time now.
“Forward-thinking automotive manufacturers, retailers and fleet management organisations have already begun to diversify their portfolios and introduce new products and services to their offering. Putting the customer – or driver – at the heart of decision-making has led to increased digitalisation, flexibility, personalisation and technology innovation. However, these approaches will be tested over the coming months and years, as the pace of change is accelerated due to global shifts.”
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