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South East vehicle auction market is booming

Date: 16 May 2014

An improving economy in the South East has seen its used car market buck national trends for conversion rates and prices, according to Shoreham Vehicle Auctions.

Alex Wright, managing director of the West Sussex-based firm, has reported a strong company performance during the first quarter of 2014.

He explained its latest auctions this month for two major financial companies produced 93% and 100% conversion rates with high CAP values, against national levels of around 50-60%.

The upturn in auction prices has mirrored a significant improvement in new car sales confirmed by the SMMT in January, which are now at their highest levels since 2007.

Latest results have show demand peak for 14-plate vehicles, with March seeing 464,824 motors being registered - a rise of 17.7%.

This comes as a stark contrast to figures achieved during the recession, which saw both new and car sales affected, including the emerging electric car market.

"Economically, this area is booming, and whatever used car volumes are thrown at it they seem to get swallowed up with prices remaining strong," said Mr Wright, who believed there was a growing divide between the North and South of England in terms of prices that could be commanded for a wide range of cars at auction.

In his opinion, East and West Sussex, Essex, and Hertfordshire were witnessing a micro-climate of higher auction prices.

He added: "Franchised dealers and independents alike are reporting strong demand for used cars and buyers are keeping their forecourts fully stocked to take advantage of the market.
"We entered both auctions expecting to experience a slight fall in conversion rates but it never came and we can see the market remaining buoyant until the expected slowdown in the summer months," he added.

Among the most bid for cars at the recent Shoreham auctions included Citroen C1, Peugeot 3008, Vauxhall Zafira, VW Polo, Golf and Renault Grand Scenic.



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