The National Association of Motor Auctions (NAMA) reports that May’s month-on-month reduction of the average price for vehicles sold by NAMA members was in line with expectations for the time of year as the peak in retail sales passes and dealers enter the quieter summer period.
The report shows that during May, average values of used cars sold at auction across the board reduced from £6,075 to £5,875, equivalent to a 3.3% decrease.
Values for fleet product recorded a 4% decrease, with dealer/part-exchange also falling by the same percentage.
Year-on-year, the average price of cars at auction has decreased by 2.5% from £6,025 to £5,875.
Prices in the manufacturer/rental sector have been the most volatile, largely due to the low volumes (around 10% of the total auction entry) and variable model mix.
Fleet sector conversions were the lowest compared to the other customer types in May and this has been the case throughout 2011.
While this continues there is the danger that the imbalance of supply and demand will persist for two to four-year-old cars.
Month-on-month auction sales increased by 25% with the total number of cars sold in May being just under 84,400 units.
The sales increase of 25% for May should be viewed in relation to the depressed April total brought on by the extended holiday in the last 11 days of the month.
Sales conversion rates reduced from 67% to 63% and the number of days a car was on site prior to it being sold, not surprisingly, increased from 9 days to 10.5 days.
Conversion rates were down by 6% compared to the same period 12 months ago.