Motor auctions houses are facing severe cost increases, and are likely to raise charges to car dealers, fleets, and other sellers as a result, it said.
Motor auction houses over the last few years have held off charge increases by absorbing cost increases, improving efficiencies and reducing their margins, but the current economic pressures mean they will have to pass on costs to their customers, said Louise Wallis, head of the SMA.
She added: "Energy and business rates have both increased, as has the cost of insurance, labour and consumables.
"The 50% increase in fuel prices since December last year has also made a significant impact on margins.'
"The vehicle remarketing industry is a low margin, high turnover business, which is only sustainable from a low cost base."