Used car wholesale values continued their fall from September through October, according to the National Association of Motor Auctions.
The average value of all cars was £5,263, a fall of £132 or 2.4% compared to September’s average, which had already fallen 2.2% from the prior month. The average value was only 1% ahead of October 2013.
October’s volumes were up 3.6% on September at 102,707 units but 5% down year on year. First time conversion rates have slipped back to 80% from 84% the prior month. Cars sold on first presentation generated an average premium of £250, a £100 dip on the previous month’s, over those unsold and re-entered.
Paul Hill, NAMA chairman, said: “Used retail activity in October took a significant downturn to the surprise of some retailers despite the warning signs earlier in the month.
"As a direct result of lower retail sales, trade demand is also running at a reduced level. This is significant because it is the first time for a couple of years that vendors have found themselves in what is rapidly becoming a ‘buyers’ market.
“November looks to be as demanding as ever from both a trade and retail perspective. The need for a direct and flexible approach with retail buyers will dictate how badly the trade will be hit in price and unsold volume terms.”