The used vehicle market in 2010 will see a general shortage of stock and continuing high levels of demand.
Average values should remain strong, but any price growth is likely to be more measured, following the significant recovery in 2009, says the Retail Motor Industry Federation’s Society of Motor Auctions (SMA) expects .
The year started slowly for many SMA members because of the adverse weather, but online bidding – where available – proved "exceptionally successful".
Buyers returned to the auction halls in large numbers as soon as the weather improved.
The expected shortage of stock – generated by fewer new car retail sales, reduced part-exchange business and fleet-replacement deferments – together with consumer demand for value for money motoring will fuel the used car market this year.
The SMA expects the cheaper end of the market to be very competitive; in particular sub £3,000 vehicles are expected to be in high demand.
John Lane, chairman of the SMA committee, said:"Auctions will remain the very best source of supply for professional buyers in 2010.
"Dealers using auction to stock their forecourts, should also look at the opportunities to remarket their non-retail part-exchanges and overage vehicles – which are likely to be highly desirable this year."