ADESA UK saw a 30% month-on-month increase in dealers registering to purchase cars in July, many buying online for the first time.
ADESA’s year-on-year volumes of defleeted stock on its UPSTREAM remarketing platform increased by approximately 140%, seeing record demand for cars and light commercials as dealers moved to replenish stocks following the reopening of forecourts across the UK.
“July was our busiest sales month on record with a doubling of the number of unique users logging in to bid and buy online,” said Jonathan Holland, managing director of ADESA UK. “An increase in vehicle supply from vendors and rising demand from buyers has shown how online remarketing is delivering a practical alternative to sale days at physical auctions.” With physical auctions still closed, a high proportion of buyers began sourcing stock online for the first time. Many were registering and buying within a week, displaying a clear intent to make the leap and purchase online.
“Many of our new customers previously stated they would never buy vehicles online without seeing them in person first,” said Holland. “However, we’ve been able to demonstrate to customers that buying online can be convenient, easy and quick, and they’ve been returning this month to ADESA to buy more stock.”
Whilst some dealers were looking for retail-ready stock, many were also recognising the value of stock in need of minor cosmetic repairs.
“The backlog of defleets, which had built up during the lockdown, are now finding their way into the wholesale market, which means the supply chain is more balanced than it was in June,” said Holland.
In addition to the year-on-year stock level increases, the total number of visitors to the ADESA UK UPSTREAM platform increased by roughly 120% from July 2019 to July 2020.
Other highlights during July include an increase in defleeted low mileage nearly-new cars, including 20-plates with 700 miles on the clock. Furthermore, demand by price was less focussed on sub £10,000 cars than it was in June, with buyers actively searching and bidding for cars priced over £20,000.
ADESA UK, a division of KAR Global, is a specialist online vehicle remarketing provider for OEMs, fleet and leasing companies and dealers, using a combination of industry expertise and cutting-edge digital technology to transform the way used vehicles are bought, sold and processed.