The wholesale used car market has taken a dip over recent weeks, with conversion rates down by at least 10% and the downturn set to continue, according to Glass’s.

“The middle of September marked a watershed,” explained Adrian Rushmore, managing editor at Glass. “It coincided with a further reduction in retail sales, just when the supply of trade cars was on the increase.”

Rushmore believes that the decrease has put trade buyers in the driver’s seat for the first time this year and there is a belief that prices will fall further.

“This is why we think that the wholesale market will remain very difficult between now and the end of November,” said Rushmore.

However, how long the downturn lasts will depend upon the speed with which the auctions, wholesalers and rental companies can reduce their inventories.

“There are concerns that if auction vendors hold out for unrealistically high prices it will take longer for the backlog to clear,” added Rushmore.

“Experience tells us that it is more likely for the leasing and fleet companies to fall into this trap of holding cars beyond the average 12 to 14 days.

“We think that vendors’ attitudes will harden when we move into December because many are likely to close their doors for business and not re-open until the New Year. This decision will be based on the reasonable assumption that prices will increase at the start of the year.”