– By Marc Sibbald –
Pickles Auctions have released their latest used car market report covering the period from October 2017 to March 2018. The report stated that the used vehicle market improved significantly in the December quarter and has continued to be strong in 2018.
Strong consumer sentiment and the construction boom that’s continuing on the east coast were listed as reasons for the good result. Another important factor was a drop in vehicle volumes nationally which is a seasonal impact because leases generally expire between March and October; and buyers come out in the warmer months.
For example the average days to sale for fleet vehicles in the December quarter was 29 compared to 34 in the previous one. For government vehicles the December quarter was 22 days compared to 26 in the March quarter.
The strong run was showing signs of a decline in the first week of March with greater vehicle volumes and aggressive discounting on new cars as manufacturers start their end of financial year sales early.
There was a comment in the report on ‘aggressive RVs’ which indicates that Fleet Management Organisations (FMOs) were battling for customers three to four years ago. This is a signal to Fleet Managers that they should shop around with their lease quotes because an FMO chasing sales will be more aggressive with an residual value to lower their monthly rentals. And publicly listed FMOs can’t afford to disappoint their shareholders.
Fixed Price selling was how Pickles helped their novated and FMO customers achieve better prices for used vehicles. This multi-channel strategy is something all Fleet Managers should consider when selling vehicles and other assets.
Pickles reported that 15% of all fleet and government vehicles were sold through Fixed Price and achieved a 7% higher return than auction.
The top five fixed price vehicles were:
- Toyota HiLux
- Audi A4
- Toyota Corolla
- Toyota RAV4
- Mazda3
Pickles Novated Leasing Remarketing has been going strong since it was launched almost ten years ago. There is now a vehicle self-inspection app so owners can provide more information on their car; including the sound of the engine. This product is an example of the continued innovation by Pickles Auctions and their desire to help owners (fleet or novated) maximise the resale value of their vehicles.
