09 July 2022

Cox to close five Manheim auction centres

Cox Automotive, which owns auction company Manheim, is understood to be planning the closure of five auction centres in the UK, including its newest operation at Bruntingthorpe.

The centres earmarked for closure are: Wimbledon, Mansfield, Haydock, Gloucester and Bruntingthorpe. Auto Retail Agenda understands staff were informed at the end of June.

The Bruntingthorpe site underwent a multi-million-pound refurbishment less than five years ago and, at the time, was held up as the firm’s flagship auction operation.

The physical auction site closures reflect the increasing shift to online auctions that was accelerated by the Covid pandemic.

A spokesperson for Cox Automotive said: “We have made an announcement regarding some proposed changes to our Manheim Auction Services business ensuring we are best placed to deliver for customers both now and in the future. Manheim Auction Services will continue to evolve to reflect ever-changing market and customer needs. We have communicated our proposed plans to customers.”

Cox did not give a timescale for the action, but it is thought the closures will be completed before the end of the year.It is unclear what will happen to the sites, or what will happen to other Cox operations that are based at the same locations. However, it is believed the locations will remain with Cox Automotive and not sold off.

 

Used car prices up £4,500 in 3 years

Latest Auto Trader Retail Price Index data shows the average used car price have increased £4,500 in three years and now stands at £17,252. They are up 23.7% year-on-year, the 27^th consecutive month of price growth. Although this has eased form the all-time high of 33.2% in April, the market is expected to remain strong.

Auto Trader adds it is sending 67% more used car enquires to retailers compared to June 2019, indicating both robust demand and the change on buyer behaviour to make contact before visiting.

 

UK customer complaints record

Customer service complaints have reached their highest level on record, says the Institute of Customer Service. They are costing British businesses more than £9bn a month in lost staff time. Shortages and supply chain issues have led to a 16% in customer problems.

However, not all automotive brands were down. Suzuki was the top automotive brand in the best-rated company rundown, sharing fifth place overall with Marks & Spencer.

https://bit.ly/3OU0p4n

 

Motorpoint ‘overvalued’

Motorpoint has been described as ‘a good company [but] relatively overvalued’ by Zeus Capital, due to its focus on nearly-new used vehicles and independence from OEMs. The slowdown in new car sales and 0-4-year old vehicle supply means it has “not capitalised on strong trading conditions to the same extent as the rest of the sector”. As stock shortages continue, investment in new sites will be key to its future growth.

 

Join industry leaders online at Auto Retail Live on Tuesday

Join Ken Savage from Perrys Group, Dale Wyatt from Suzuki, Ian Godbold from Cambria and Alistair Horsburgh from CitNOW this Tuesday afternoon to examine the technology and process revolution in auto retail. Prepare for the significant change coming in the digital space between retailer, manufacturer and consumer with the 40-minute webinar – and take the opportunity to get your questions answered by the panellists.

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WORLD NEWS

California retailer in $2.5m ‘aggressive marketing’ settlement

California’s Moss Bros Auto Group has agreed to a $2.5m class-action settlement in a case surrounding ‘ringless voicemails’ – a practice popular with auto dealers. Such phone calls deliver messages direct to voicemail and do not trigger a ring on an individual’s device. They cannot be blocked in the same way other unsolicited calls can.

Retailers had claimed such voicemails do not violate the Telephone Consumer Protection Act; the US district court has now disagreed. Each of the 2,385 class action claimants will receive $46.

https://bit.ly/3NUJSf2

 

Wholesale used car prices fall

US wholesale used car prices fell in June, marking the start of the seasonal summer cooldown. They were down 1.3%, although this remains 9.7% higher than a year ago. Further declines are not expected to become commonplace for the rest of 2022 though, due to supply shortages. A shortage of off-lease vehicles means that “we will only see modest improvements… by 2024, and even beyond then, we are not likely to get back to 2019 levels,” said Cox Automotive chief economist Jonathan Smoke.

https://bit.ly/3OXk3fJ

 

 

STOCKWATCH

Closing prices on 8 July 2022 and weekly change

Auto Trader Group 592.0p (+49.8p / +8.7%)

Caffyns 550.0p (n/c)

Halfords 156.3p (+10.3p / +6.8%)

Inchcape 709.5p (+18.5p / +2.6%)

Lookers 76.5p (+1.7p / +2.2%)

Marshall Motor Holdings 397.0p (n/c)

Motorpoint 188.5p (-6.0p / -3.1%)

Pendragon 21.8p (+0.1p / -0.4%)

Vertu 56.3p (+1.7p / +3.0%)

 

COMING UP

Tuesday, Auto Retail Live: Technology and Process. Sign up here

Tuesday, UK retail sales

Wednesday, UK GDP

Thursday, FCA chief executive Nikhil Rathi speech on the future of UK financial regulation

 

 

 

MONEY MATTERS

FCA urges consumers struggling with money to seek help

More than 1 in 2 borrowers in financial difficulty waited more than a month before seeking help – but 7 in 10 who did seek help said it was more useful than they anticipated. The FCA is now urging consumers to get help as soon as possible – by contacting their lender (who have been told by the FCA to support consumers) if they are struggling to make payments, and contacting the government-backed MoneyHelper service if they are worried about money.

 

Big brands raising prices 5x faster than supermarkets

Big food brands are raising prices up to five times faster than supermarket own brands. “There are some nasty surprises lurking in aisles, and big brands are at best naïve about the impact of pricing on their customers,” said consumer rights campaigner Martyn James.

The average shopper will spend £380 more on groceries this year, said Which?.

https://bit.ly/3z3Nqrv

 

 

Tags: Auto Retail Live, Auto Trader, Cambria, Citnow, cost of living, costumer complaints, Cox Automotive, FCA, Manheim, Motorpoint, Perrys, Suzuki