AUCTION PRICES / EYE WATERING?

[XDR 15]

Good Evening All,

Hope you are all keeping well?

Im glad to read that for the majority of us, the sales & enquiries are now picking up. 

However I wanted to ask .... how are you guys getting on with buying stock? For us, we mainly use BCA and a handful of other auction houses - however the prices recently have just been eye watering! 
 

I anticipated prices would be in line with the typical DEC/ JAN period - where people will pay strong money for stock (even factored in for the bounce back loan / grant brigade)  - however I’ve seen several cars go 2-3k over cap clean (even with bone dry spec).
 

Its now coming to that point that it’s easier sourcing stock away from the auction.

Are you guys holding out until physical auctions, or are you getting stuck in the bidding wars?  

I just couldn’t justify paying stupid money for a car (1k over book) then to find out I’ve bought an absolute shed - as I’m sure We all agree .... auction pictures, reports never tell you the full story.

Edited June 14, 2020 by XDR

[Lakeside 94]

Glad it’s not only me that’s noticed. Prices are beyond a joke and there’s definitely some big risk takers out there, as you say paying way over cap clean for even UKCGR stuff that’s bound to be scrap.

I think a lot of dealers are sourcing elsewhere as I’m even struggling to buy private. Rang about a few private ads this week that have literally been listed within an hour to be told they’ve already sold.

[XDR 15]

@Lakeside

I’m glad the feelings mutual - The risk to reward ratio based on the current auction prices just isn’t worth it. I’m not working for £200-£300, as quite frankly a comeback / prep could see you in the red quickly .

Normally, my chores for Sunday would be feet up, a cup of coffee and get on the BCA App to start tracking stuff for tomorrow, but based on current situation...I don’t see much point.

As for sourcing private stock, very rarely have I found a seller who will take near cap clean.... they always seem to be pricing their vehicles around main dealer (but don’t understand its not achievable) 

 

Hmmm... what a weird time to be in this trade - let’s pray BCA really start thinking about opening up soon - I doubt it though as at the moment it’s a party down there ... “let’s get rid of all our sh**ters, that we’ve had for months, for above cap clean, as dealers need stock / have some money” 

[MrC 142]

I'm trying to source a few Transporters for customers, prices are through the roof at the moment, I'm cringing and wincing. 

[A & S 20]

Yes it is quite strong at Bca, I managed to buy 4 last week. Freelander 2, Volvo V70, Honda Civic and a Focus estate. They were all above cap clean  I work backwards from at good price and there is healthy profit to be had. Got 7 to chase tomorrow. Think prices will settle in a few weeks as dealers are stocking up. Main dealers open from 3rd June so give it a few weeks for fresh stock to come into auction houses. 

Doubt very much that auction houses will be open to attend physical auction sales until towards the end of the year or early part of next year. 

And for eye watering prices at auctions it's only the bidders to blame, won't make any difference if the auctions were open to attend.

[Lakeside 94]

7 hours ago, A & S said:

 

Doubt very much that auction houses will be open to attend physical auction sales until towards the end of the year or early part of next year. 

And for eye watering prices at auctions it's only the bidders to blame, won't make any difference if the auctions were open to attend.

Agreed but at least the high prices could be justified if I could actually see/here the cars in person. Must be some burnt fingers out there at the min.

I was wondering where we’d stand with that at the min though. As usually with a live physical auction if the car came in smoking or knocking the auctioneer would usually announce it for online bidders. But obviously not now, so would you have a right to complain if you turned up to collect and it had a serious engine fault?

[petrol head 46]

1 hour ago, Lakeside said:

Agreed but at least the high prices could be justified if I could actually see/here the cars in person. Must be some burnt fingers out there at the min.

I was wondering where we’d stand with that at the min though. As usually with a live physical auction if the car came in smoking or knocking the auctioneer would usually announce it for online bidders. But obviously not now, so would you have a right to complain if you turned up to collect and it had a serious engine fault?

If anyone hasn't had their fingers burned at an auction or in general buying cars, then then they won't have bought many. The auctions will calm down once we get back to a degree of normality, with a few exceptions.  

[XDR 15]

Talking about burnt fingers, I know of 2 local dealers, who hit the “buy it now” button and purchased unseen, when we first went into lockdown and this is what happened to them;

 

Dealer 1) Bought an assured car, All green ticks nothing of any concern. Collected the car and by the time he hit the motorway .... he got an Gearbox Malfunction Light (Audi) - rang assured team, they said they are closed and can’t do nothing until they are open / when they open - APPALLING! 

 

Dealer 2) Bought a Car, not assured Or essential check, but  upon collection, the car had a nasty miss fire, and the paint work granted it was a grade 4 had so many different shades / panel gaps - ALL STUFF YOU’D NOTICE AT A PHYSICAL AUCTION

 

To be honest that’s why I’m trying to hold on, and not buy anything without physically seeing it. Our jobs are pretty much to see, hear and touch a car before we bid. 
 

At the moment there’s too many Billy Big Boll*cks bidding - let’s hope it calms down soon 

 

 

 

 

[Lakeside 94]

Best one I seen last week whilst having the live auction on in the background....

2004 Suzuki Alto at Enfield I think it was. On the register three times. Cat D once and Cat C twice, don’t think it had an MOT.

Cap clean was £350, guessing that’s without taking write off into consideration? Sold for £775+fees

seriously who on earth is going to make any money out of that? It’s worth scrap value.

[justina3 518]

1 hour ago, Lakeside said:

Best one I seen last week whilst having the live auction on in the background....

2004 Suzuki Alto at Enfield I think it was. On the register three times. Cat D once and Cat C twice, don’t think it had an MOT.

Cap clean was £350, guessing that’s without taking write off into consideration? Sold for £775+fees

seriously who on earth is going to make any money out of that? It’s worth scrap value.

I can beat that audi TT in enfield this morning cap clean £1450 retail £2625 i had a punter for it and was going balls deep at £2200 -----nope i didnt even get my hand up ended up selling for £4700 plus fees

[Stalker 180]

37 minutes ago, justina3 said:

I can beat that audi TT in enfield this morning cap clean £1450 retail £2625 i had a punter for it and was going balls deep at £2200 -----nope i didnt even get my hand up ended up selling for £4700 plus fees

Mind the book is no good on that, its no use at all.

Its a roadster with 30k on it..... crap clean should have been way higher.

 

Not over 4k though

[justina3 518]

15 minutes ago, Stalker said:

Mind the book is no good on that, its no use at all.

Its a roadster with 30k on it..... crap clean should have been way higher.

 

Not over 4k though

watching the same car was we ? seems like the rest of the country was as well.

[Stalker 180]

Nah, I just had a nosey through the lists, im watching all sales thinking WTF?

Im not buying a thing, ill put lads back on furlough for next month i reckon.

[XDR 15]

1 hour ago, justina3 said:

I can beat that audi TT in enfield this morning cap clean £1450 retail £2625 i had a punter for it and was going balls deep at £2200 -----nope i didnt even get my hand up ended up selling for £4700 plus fees

Check mate! - I’ve got one even better 

 

2013 BMW M5 ( came in today) 

• Alpine White / Red Leather 

• 50k Miles 

• MARGINAL 

CAP CLEAN £15,700

BCA SOLD PRICE £22,000 + FEE’s to be added yet 

that’s nearly £6.5k over book? Unless a celebrity or royalty had that car, it can’t justify that price! 
 

 

[Mojo121 229]

1 hour ago, justina3 said:

I can beat that audi TT in enfield this morning cap clean £1450 retail £2625 i had a punter for it and was going balls deep at £2200 -----nope i didnt even get my hand up ended up selling for £4700 plus fees

Damn you beat me too it poverty spec 150 bhp but with 30k miles.

i have a photo but the forum won’t let me upload.

Anyone with sense will rise this out, don’t play into BCAs hands and get them when all the BBLers have spent out.

[Nevillec 11]

It is the same with vans ( we only sell vans)...even real junk Vauxhall Vivaros  ( never touch them )  with 160k miles going for £1000 over cap clean.

Hopefully will all settle down soon 

[awc1000 93]

3 hours ago, Mojo121 said:

Damn you beat me too it poverty spec 150 bhp but with 30k miles.

i have a photo but the forum won’t let me upload.

Anyone with sense will rise this out, don’t play into BCAs hands and get them when all the BBLers have spent out.

what age and colour was this car please? was it definitely a 150bhp 2wd version? cheers.

[MarkTVS 209]

Prices are definitely mental £8600 for a silver TTS that caps clean at £6925, where’s the wages in that?

[justina3 518]

47 minutes ago, awc1000 said:

what age and colour was this car please? was it definitely a 150bhp 2wd version? cheers.

2003 reg started with EY53 billy basic in silver £4700 plus the fees someone really wanted this car.

[New year revolutions...... 197]

I said my bit on prices

im out

[XDR 15]

My only concern is... these loans have been handed out to every Tom, Dick, Harry and his dog too.
 

Even if things level off a bit, things will be much more pricey going forward. We’ve gone past the days of anywhere near CAP CLEAN / Slightly above it. Now we’re going to have to factor in the abundance of money.

People now have 50k burning a hole in their pocket, and some people will gladly spend it in an absurd / not financially sustainable way (as they think it’s not their money).

So only people winning are 

1) Vendors - as they get higher sale prices 

 

2) Auction - more fees

 

3) Customers - as they’ll get a competitive price - as dealers will squeeze their own margins to make money 

 

 

 

Edited June 15, 2020 by XDR

[Padstar 0]

Managed to buy 7 this week but looked at 100s. God knows what they’ll be like if and when they arrive. All seem pretty clean on photos and good mot history but It’s a minefield even when your there In person We are really short of stock (sold a bit pre lockdown) and can’t sell fresh air. Either that or close up for another month or so until it settles down (if that will ever happen)  Think I’ll see what they’re like when they turn up if they’re all a pile of crap I think I’ll go and sell wood pidgins or something. There’s plenty of them about and cheap as well. 

[XDR 15]

13 minutes ago, Padstar said:

Managed to buy 7 this week but looked at 100s. God knows what they’ll be like if and when they arrive. All seem pretty clean on photos and good mot history but It’s a minefield even when your there In person We are really short of stock (sold a bit pre lockdown) and can’t sell fresh air. Either that or close up for another month or so until it settles down (if that will ever happen)  Think I’ll see what they’re like when they turn up if they’re all a pile of crap I think I’ll go and sell wood pidgins or something. There’s plenty of them about and cheap as well. 

I would be very interested to see how you get on. What vendor were they? 
 

If you don’t mind, once you’ve got them delivered if you could fill us in on how they turn out? 
 

I’m sure you’ll be doing us all a favour - as you’d either ease the uncertainty of buying online or make us change our profession for a few months haha!! 

[Autolink100 34]

Was watching the van sale online on Friday. The auctioneer let slip he had over 500 dealers logged on! Everything made a fortune and most of it was without Assured reports. If you think buying cars without seeing in the flesh is difficult, have a go with vans!

[Padstar 0]

53 minutes ago, XDR said:

I would be very interested to see how you get on. What vendor were they? 
 

If you don’t mind, once you’ve got them delivered if you could fill us in on how they turn out? 
 

I’m sure you’ll be doing us all a favour - as you’d either ease the uncertainty of buying online or make us change our profession for a few months haha!! 

Yes will see what they are like and report back. I’m fully expecting that most if not all will have issues. It will be a nice surprise if i get a couple without issues at least. I used to buy quite a bit off dealer auction before that went through the roof too. Surely used car prices will have to go up because god knows how anyone is making decent profit looking at what cars are going for. £1ks over cap clean! (Or have BCA got a good little system that when 10 people press bid at the same time it shoots the price up even if they all bid at the same price?)