Lack of fleet vehicles in Q3 boosts auction demand

Lower volumes of corporate fleet vehicles in the UK over the last quarter has resulted in full auction halls supported by active online buyer attendance.

Well maintained contract hire, daily rental and manufacturer vehicles are achieving strong financial returns with high conversion rates, according to City Auction Group.

 With a predicted rise in volume in the coming months from PCP returns, the used car market remains buoyant and should result in a busy Q4 period, with franchised dealerships and independent motor retailers actively sourcing quality ready to retail vehicles.

Michael Tomalin, City Auction Group managing director, said: “Over the last three months, we have seen lower volumes of corporate fleet vehicles and this has been pushing up prices. 

“We have seen values rise by 3-5% across the board since May and CAP clean values have been high on small city vehicles. 

“We expect a slight drop in values over the next quarter as supply increases, which is good news for franchised dealers and independent motor retailers.”