Average values of used cars sold at auction across the UK increased by 2% from £4,577 to £4,690 between June and July.
The latest figures from NAMA show it is important to note that while the manufacturer/rental market recorded an increase in values of 4% the fleet and dealer part exchange sectors, which account for 90% of sales, recorded more modest increases of 1% and 3% respectively.
All the key performance indicators signalled positive market conditions during July, although retail demand remained at its normal seasonal low point and dealers have been unwilling to commit themselves to large amounts of stock.
This has resulted in dealers buying from the auctions on a ‘little and often’ basis. Nevertheless sourcing used vehicles during this period has been more difficult than usual this year with increasingly limited choice for auction users. This has meant that many auctions have enjoyed higher attendances as more buyers compete for the cars that are available.
Andrew Hulme, NAMA chairman said “The combination of auction shortages and sales conversion rates increasing from 72% to 77% in July has helped to produce positive prices.
“This means a smaller number of cars being carried over to subsequent auctions as vendors readily accept what they believe to be acceptable offers in relation to their reserve prices. Over the last couple of months with fewer cars concentrating trade demand, prices have been pushed up. This reduces the supply again and the cycle is repeated.
“We suggest that both buyers’ and sellers have been moderately surprised by the overall strength of the market.”