BURCHMORE'S REPORTS GREAT START TO 2010

BURCHMORE’S SAYS: If the first auctions of the year are anything to go by, 2010 is going to be a bumper year. That’s the verdict from Darryl Jacobson, managing director of Burchmore’s, who reports an “overwhelmingly positive sentiment” at the first vehicle auctions of 2010.

“We always expect the first auctions of the year to be good. The trade normally dominates proceedings because, after the holidays, they are stocking up. This year, we have certainly seen excellent attendance from trade buyers and enthusiastic bidding on their part,” he reports.

However, what has taken Burchmore’s by surprise is the record attendance by private buyers. “Registered private buyers are 25% up on 2009, which bodes extremely well. Overall, the sentiment is much more positive than last year. In fact, sentiment amongst private buyers is overwhelmingly positive. They are upbeat, enthusiastic and willing to spend large sums of money,” Jacobson reports.

While they are opening their wallets, Jacobson notes however that buyers remain extremely price sensitive. “The fact that we sell at wholesale prices is certainly attracting these private buyers. They appreciate the fact that they are bidding against the trade and therefore saving the dealer margin. The private buyers may be more positive, but they are still being quite frugal,” he reveals.

As is the case in so many other industries, Jacobson says that the positive sentiment is probably due to the Soccer World Cup. “There is huge hype around the event. Buyers are excited and optimistic about the success of this sporting spectacle and the resultant economic spin-offs; this is already translating into money changing hands in the used car game,” he says.

Jacobson explains that there are a number of other factors that are luring private buyers to Burchmore’s. “It’s a good time of the year for us. Thousands of students are starting university – given the lack of good public transport, they need cars. School is starting and, with that, scores of mothers want to invest in new mom’s taxis, preferably with state-of-the-art safety features. Furthermore, enterprising businessmen are buying sedans and people transporters in advance of the Soccer World Cup; they have realised that there is money to be made by offering transport to the fans,” reveals Jacobson.

Bearing this is mind and providing stock is available, Jacobson says that he is anticipating a bumper year for the country’s leading vehicle auctioneer. “I have no doubt that this will be another very good year for Burchmore’s. We expect a 9% improvement in retail off-the-floor sales in 2010. This is versus the last calendar year which – it must be said – was a very good year for Burchmore’s,” he comments.

If the company achieves this growth, it means that Burchmore’s will sell in excess of 7 000 units off the floor at its three megacentres around the country. “The potential is simply huge,” notes Jacobson. “We are convinced that 2010 is going to be an outstanding year – for the used car industry as a whole and specifically for Burchmore’s.”