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It was the fifth quarter of successive growth, as the second hand market hit a five-year high, reflecting  recovering supply in the new car market, which, in turn, has improved used car availability and choice.

According to Close Brothers’ Forecourt Foresight research, which surveys more than 130 dealers, almost three-quarters (74%) of dealers use trade-ins as their primary source of stock. More than two-thirds (70%) use online auctions and three-in-five (60%) buy vehicles from private sellers. Added to those figures 44% of dealers get their stock via other dealerships, and a third (33%) turns to digital platforms such as Auto Trader and Motorway.

Only 21% uses in-person auctions, writes Alex Wright. 

The bottom line is, however, that whichever channel they use, with more stock now flowing through the market, it’s critical that car dealers capitalise on the opportunity by finding the best vehicles possible.

Auction buying

Paul Hill, spokesman for the National Association of Motor Auctions (NAMA), says the most effective channel for stock sourcing is through auctions, both physical and online. Given that NAMA’s members handle more than one million vehicles annually, including cars and supercars, they are well placed to help in that regard, he claims.

“NAMA members are trusted sources that provide a high level of reliability and transparency, which is crucial for dealers,” says Hill. “In addition to traditional auctions, online auctions have become increasingly important.

“The digital transformation of the auction industry has made it possible to participate in auctions from virtually anywhere. These online platforms provide real-time data and analytics, helping dealers make decisions quickly.

“The ability to bid on vehicles remotely has streamlined the process, making it more efficient and cost-effective.”