As temperatures in July soared, so the demand for vehicles heated up as prices for sold vehicles enjoyed a 15% increase compared to this time last year, according to figures from the latest Cox Automotive Market Overview report.
The year on year price increase for sold vehicles was also reflected in the month on month figures with June and July recording a 7% increase – surefire signs of an increasingly warming market during the summer months.
Drilling down further into the numbers revealed a sunnier outlook for the much derided diesel with wholesale prices rising by 11.5% and petrol enjoying an even more pumped up performance in July with a 23.1% price rise.
The volumes of vehicles coming through the lanes also remained at a consistent level, in line with the previous month’s numbers.
The sun was very much shining across the wholesale market throughout July with a positive upturn in demand for ready to retail vehicles reported as dealers headed to Q4 with a positive outlook for the rest of the year.
However results from the latest July dealer sentiment survey suggest storm clouds may be brewing as confusion and uncertainty sets in around the introduction of the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) on 1 September.
The survey findings revealed that over a third of dealers (35%) admitted to not being aware of when WLTP comes in to force.
Around two thirds (61%) of dealers said they are not up-to-speed with the timetable for the roll out and are unclear on what the new testing means for new cars after the deadline.
As a further wake-up call for the market, just under half of the dealers polled (47%) believe the new procedure is creating supply shortages in the market.
An overwhelming nine in 10 dealers (86%) also believe there will be tactical registrations taking place to register WLTP impacted vehicles ahead of the 1 September deadline, serving to create a significant spike in August registration figures.
Philip Nothard, director of external relations at Cox Automotive, said: “The survey responses are quite startling. It’s incredible that a third of dealers say they are still unaware of WLTP and this should be of grave concern to the government and manufacturers.
“In addition, almost two-thirds report being unaware of any timetable, a similar number are unclear about what it actually means to new car sales and just over half saying they’re not getting clarity from the brands they represent.
“There’s been much talk in the sector about confusion and low awareness levels and these responses suggest this is more than idle speculation.â€
Overall July’s MMR shows the market remains steady in terms of volume, with demand for vehicles heating up and dealers now willing to pay more for quality vehicles that match their requirements.
Unlike the temperatures that left us sizzling in June and July, the market on the whole has warmed without overheating, creating a mood of optimism as the sun sets on the summer months.
However as July’s sentiment survey shows, concerns about WLTP continue to rumble away and the optimism generated in the summer may soon give way to more a stormy and turbulent market as we move into the autumn months.
