Used car prices at auction have seen a noticeable downturn, according to RV experts at Glass’s.

“The middle of September marked a watershed,” explained Adrian Rushmore, managing editor at Glass’s. “It coincided with a further reduction in retail sales, just when the supply of trade cars was on the increase.

Rushmore warned fleets that conversion rates at auction have fallen at least 10% in the past four weeks, “with the result that more cars have been swelling the ranks for the next sale”.

“For the first time this year trade buyers are in the driver’s seat – there is no urgency to buy for stock and there is the belief that prices have further to fall. This is why we think that the wholesale market will remain very difficult between now and the end of November. The duration of this difficult period will depend upon the speed with which the auctions, wholesalers and rental companies can reduce their inventories.

“There are concerns that if auction vendors hold out for unrealistically high prices it will take longer for the backlog to clear. Experience tells us it is more likely for the leasing and fleet companies to fall into this trap of holding cars beyond the average 12 to 14 days.

“We think that vendors’ attitudes will harden when we move into December because many are likely to close their doors for business and not re-open until the New Year. This decision will be based on the reasonable assumption that prices will increase at the start of the year.”

Article by Business Car

By Hugh Hunston;  BusinessCar

Skoda is planning an “assertive” business car campaign, which the brand’s head of fleet Martin Burke claimed should nearly double the company’s share of the corporate sector by early 2012. Using the new Superb Estate, on sale from February, as a focal point for its “born again” initiative Skoda’s fleet department will deploy its first “significant and specific” marketing budget as it aims to reach 3% of the sector, or 30,000 cars. Burke said: “Unless we punch above our weight people will not come to us or consider us in the fleet world. We have to be assertive rather than aggressive, shout from the rooftops with a different tone of voice than before. We must be a serious business-like brand before becoming a serious fleet player.” The large estate, with an anticipated £1100 price premium over the hatchback will, claimed Burke, help relaunch the Superb, which he admitted had underachieved with a 25% fleet factor, and show that along with the Octavia and Fabia Skoda hatchbacks and estates, offered a “serious portfolio of fleet choices”. Burke added: “Previously we relied on generic brand and product advertising and while that supports an emphasis on user choosers having a bespoke promotional budget rectifies what was a complete nonsense before. ADVERTISEMENT: Content Continues Below “It is not enough to be jolly good old Skoda, an extension to the VW Group. We will project our own identity and be more assertive. Going from 1.6% of overall fleet sales to 3%, or 17,000 to 30,000 units annually is a realistic aspiration from early 2012.” Skoda’s fleet department has identified motorway service areas as promotional “domains” for its target customers after advertising and marketing agency Mediacom showed potential clients average spend 28 minutes a working day using their facilities. As a result it plans to make contact via Costa Coffee wi-fi tables, fuel pump nozzle handles and billboards. “Getting bums on seats and aware of our cars’ premium class cabins is vital for us. We will canvas company car drivers, particularly user choosers at service areas and invite them to regional ride and drive events,” explained Burke.

The fleet new car market showed a glimmer of optimism last month, recording the best year-on-year result so far in 2009.

The fleet market was 13.6% down on September 2008, compared with 25.1% down for the year to date and 21.6% down in August, prompting hopes of a recovery. But the downside for fleet was the diminished share of the market, as the scrappage scheme combined with the new ‘59’ registration plate to see retail sales account for 62.8% of new car registrations. By comparison, the figure was 52.1% for September 2008’s change to the ‘58’ plate.

Ford continued its good form of 2009, showing sales up 13.3% thanks mainly to the popularity of the new Fiesta compared with the predecessor that was being run-out this time last year. Vauxhall was down 12.0%, ahead of the market in second place, with all of the top seven manufacturers performing above the market average, while Toyota, Nissan and Mercedes struggled, 34.8, 28.1 and 36.1% down year-on-year respectively. Honda and Renault, just outside the top ten, were down 22.9% and 40.1% respectively.