Used cars

Price must be right for auction

Used cars need to be even more affordable, according to the society of motor auctions (SMA)

Auto Express Car Reviews

By Ross Pinnock

31st May 2007

The volume of ex-fleet vehicles left unsold at auction sites should force fleet companies to lower their reserve prices, according to SMA director Alistair Manson.

“It’s time operators faced the reality of a changing market, and ensured that vehicles they are selling are realistically valued when entered at auction,” he explained.

Manson feels some fleet firms expect to achieve top guide prices for below-average cars, and added: “This is unrealistic and un-economical, as unsold vehicles often go for less than the first bid many weeks later.”

This view was echoed by Keith Elliot, boss at Premier Motorauctions in Leeds. He advises fleets with less-than-perfect cars to expect lower prices come sale time. “The trade only has eyes for prime, ready-to-retail stock at the moment, and competition for this limited product is strong,” he explained. “However, a lot of auction stock reflects the ‘true’ life of a vehicle, and those examples find new homes difficult to come across.”

But the managing director at Chelmsford Car Auctions in Essex, David Scarborough, disagreed. He thinks every model can sell if the price is right. “There is demand for all products, regardless of condition and specification,” he said. “The trouble is, vendors are reluctant to accept a car’s true value.”

If you’re planning to sell at auction, the SMA has some tips for achieving the best price. These include gathering all the spare keys, logbook and service history together, and giving the vehicle a thorough clean.