The National Association of Motor Auctions (NAMA) monthly market report shows that during June, average values of used cars sold at auction across the board decreased from £4,625 to £4,550, equivalent to a 2% drop.
Values for fleet cars showed a 5% drop and dealer/part-exchange fell 3%.
Year-on-year, the average auction price of cars has increased by less than 2% from £5,875 to £5,975.
Trading matched expectations.
This feeling of normality was supported by the declining influx of cars, which usually goes hand-in-hand with an improvement in conversions and a slight fall in days on site.
Month-on-month auction sales reduced by 4% with the total number of cars sold in May being just shy of 81,100 units.
Sales conversion rates increased from 63% to 67% and the number of days a car was on site, prior to it being sold, dropped from 10.5 days to 9 days.
Fleet sector conversions were the lowest compared to the other customer types in June and this has been the case throughout 2011.
However, June did see an improvement in all three sectors.
Much of this improvement is to do with vendors sensing that market prices were heading downward and that delaying a sale would only result in a lower bid the next time of asking.
Car dealers seem to have reacted to the market more quickly becoming more accepting of conditions and pricing. The corporate sector is still less willing to accept the price decline, but has been moving more in line with market sentiment in recent weeks.
Andrew Hulme, NAMA chairman, said “Fleet and dealer part-exchange sales account for around 90% of the total UK auction business.
"Here, prices have been falling by 4% in each of the last two months. This rate of fall was slightly greater than last year, but there is a feeling that the current supply is better balanced with the prevailing demand.
"Given that there is not going to be any influx of cars until the middle of September, the prediction is that prices will not deteriorate much further between now and the end of August.”