The auction bible – how Glass's Guide decides the value of your car

Sunday, January 1st, 2017 - autos, cars, motoring, news

Source : The auction bible – how Glass's Guide decides the value of your car

How does the trade decide what your car can be worth along with how much you’ll pay for your next used buy? We find out

Advertisement

Everyone remembers the moment in a car purchase when the salesman reaches into a desk drawer, produces his used car value guide, riffles pages for a minute along with then names a cost for your trade-in with an air of unimpeachable authority.

The book can be his key tool, along with he isn’t keen to share its contents. 

Where do these prices come via? along with given in which they govern so much about a deal, how do we know they’re accurate? How can a cost guide forecast a completely new design’s secondhand value, as some do?

Having so often been a customer inside the automobile selling game, I decided to investigate the various other side of the business by accepting an invitation to join Rupert Pontin, completely new head of valuations at Glass’s Guide, oldest along with best known of the UK’s guides, first at his offices in leafy Byfleet on London’s south-western outskirts along with then at a car auction.

Pontin has been inside the game for 30 years, managing fleets along with leasing firms, selling cars along with most recently launching successful digital versions of Glass’s cost guide along with forecasting tool. We gather inside the boardroom, where the item soon becomes clear in which, for all the science along with statistical theory the business nowadays collects, old-fashioned industry ‘nous’ remains all-important.

Used car cost movements are a classic chicken-along with-egg situation. Latest book prices depend heavily on recent auction sales (fed in bulk to Glass’s specialists by auction firms), which in turn have been affected by previous book prices. For a moment the whole thing sounds predictable, nevertheless every expert insists in which the market can be capricious inside the extreme, along with every one of them features a rich selection of stories about surprises.

Book prices usually change monthly, affected both by factors such as supply, demand along with fashion along with by tiny adjustments Glass’s experts make to take account of changing market conditions.

“We have 12 years’ market analysis of cars’ pricing over their lifecycles,” says Pontin, “plus a decade of data about how prices are affected by background inflation. Throw in our knowledge of the seasonality of prices along with the effect of completely new registration plates, then factor inside the state of the background economy, along with you see why cost movements result via complex calculations.”

How reliably can you predict residual values up to three years ahead? There’s no mystery, insists Pontin. “You start via a firm foundation,” he says, “by learning as much about a completely new car as you can. We knew all about the Jaguar XE many months before the item hit the market. Then you take account of the cost behaviour of predecessors along with competitor vehicles along with add your own impressions of how the item compares. Do the item right along with you won’t be far away.”

Some time later we convene at BCA Bedford, one of the country’s biggest auction sites, to watch cars get sold along with understand the process.

Pontin can’t disguise his love of the buy-sell process, although he’s quick to add in which This kind of can be a habitat for only the slickest amateurs. “They’re all buyers,” he says, indicating the motley group of people – all men – who swirl through the two selling halls. “They’re main dealer buyers, buyers for independent dealers along with traders, one-man operations. You see fewer people nowadays because so many trade online.”

How can the online buyer know if a car can be Great? “You can’t know for sure,” says Pontin. “in which’s where your nose comes in. Make along with mileage tell you a fair bit. along with cars are graded on condition, one to several, nevertheless the item’s not an opinion; the item’s decided on things like mileage, equipment, age, provenance.” Some cars are unclassified; they’re basically old along with undesirable. A total of 650 will flow through two halls in one afternoon, along with we see a lot of them go.

Pretty soon we fall to scanning individual cars, as every car nut would likely do in an arena containing 650 vehicles, every one of which can be for sale.

I’m pleased to see Pontin can be as enthusiastic about This kind of process as me. Unsmiling, canny buyers are everywhere, listening carefully to cars as they’re began to drive into the auction ring, sighting down their sides for crash damage, peeping inside to see if This kind of was the design with the sat-nav.

I’d have been out of my depth along with would likely have found categories such as ‘main dealer direct’ (beware), ‘general’ (be careful) along with ‘no reserve’ (risky bargains) completely bewildering without help.

A well-run auction like BCA Bedford can be an exciting place in which offers far better customer service than most. nevertheless as I walked through all those cars while the Glass’s chief selected some stand-outs, the item became ever clearer in which the advice he’d delivered within a few minutes of our arrival was entirely correct: “This kind of can be very much a trade environment. If you want to buy, go with someone who actually knows what they’re doing.”

Auction stars

1 – Audi Q7, 08-Plate

Repossessed car with 79k miles. Known history nevertheless questionable red calipers. Sells for £10,150 against trade of £13,800. Repos can be bargains.

2 – Rover 25, W-Plate

Poor paint, crusty arches along with several owners nevertheless only 99,000 miles along with the item sounds okay. Sells at £150; cheaper than walking. Get another when the item dies.

3 – Volkswagen Passat, 11-Plate

Poor paint, crusty arches along with several owners nevertheless only 99,000 miles along with the item sounds okay. Sells at £150; cheaper than walking. Get another when the item dies.

4 – Kia Soul, 59-Plate

We reckoned its paint job might deter buyers, nevertheless low miles along with fine condition see the item go for £4450, against a £3950 book cost. the item’ll retail for £5500.

5 – BMW 520d, 12-Plate

Great-looking 50,000-miler sells at £17,100. No sat-nav, nevertheless its condition will attract customers. Buy a TomTom along with live happily ever after.

6 – Land Rover Freelander, 10-Plate

Great-looking 50,000-miler sells at £17,100. No sat-nav, nevertheless its condition will attract customers. Buy a TomTom along with live happily ever after.

Get the latest car news, reviews along with galleries via Autocar direct to your inbox every week. Enter your email address below:

by via Autocar RSS Feed



Source: The auction bible – how Glass's Guide decides the value of your car

Related Post :

    Pictures gallery of The auction bible – how Glass's Guide decides the value of your car

    Advertisement
    The auction bible – how Glass's Guide decides the value of your car | admin | 4.5