– By Marc Sibbald –
The latest market report from Pickles shows that clearance rates were down more than 10% in the June quarter but prices were steady compared to the first quarter of the year when low volumes of quality government and fleet vehicles drove the market higher.
Though the second quarter wasn’t that bad because prices still exceeded the Glasses benchmark in the auction and fixed priced categories for both government and fleet vehicles.
One reason for the strength in the market during the first quarter according to Pickles was a series of natural disasters earlier in the year. Demand from private buyers cashed up after insurance payments for written off vehicles increased competition with trade buyers to drive prices higher. Stable interested rates also provided a confidence in the market for consumers.
Vehicle age and kilometres were consistent between quarters and the report highlights the different in these two variables to explain why used car buyers are attracted to both ex-fleet and ex-government vehicles. For example, from April to June the average age of government vehicles was 3.3 years with 63,909 kilometres and fleet vehicles were 4 years old with an average of 93,818 kilometres travelled. This provides two distinct price points in the dealer’s used yard.
Dealer only auctions provided good returns for Fleet Management Organisations (FMOs) that are willing to try new sales channels and engage with dealers in a more controlled setting. Pickles believes varying sales channels helps spreads risk for the FMOs; and engaging dealers prior to the sale maximises the result.
Fixed Price appears to the strongest channel for used vehicles with Pickles reporting a 7-12% better result than auction. In a tough market Pickles anticipates more growth in this channel which currently accounts for approximately 14% of sales volume.
The list of hot selling vehicles isn’t a surprise because it reflects the new car market in recent years and the strong fleet sellers.
- Toyota Hi-Lux
- Ford Ranger
- Toyota Corolla
- Hyundai i30
- Mazda3
- Mazda CX-5
- Toyota Camry
Novated Lease Remarketing is a product that Pickles have offered for some time. It provides an option for drivers to exit their novated lease easily and with confidence. The type, age and quality of these vehicles provides good returns for novated drivers and some interesting data compared to fleet and government vehicles.
The table below indicates the popularity of some brands with novated leasing customers.
| Brand | % of Sales |
| Holden | 14% |
| Ford | 13% |
| Mazda | 13% |
| Hyundai | 12% |
| Toyota | 11% |
| Subaru | 10% |
| Volkswagen | 6% |
| Jeep | 5% |
| Audi | 5% |
| Honda | 4% |
| BMW | 4% |
| Mercedes-Benz | 4% |
Source: The Pickles Report July 2017
