The National Association of Motor Auctions has reported that used car prices rose by 2.4% as average mileages fell by 0.8% at auctions during December.
NAMA said that the “notoriously mixed” trading conditions of the year’s final month affected both hammer prices and first –time conversion rates but the average price of a car at auction rose from £5,558 to £5,693 from the previous month as the average mileage declined by 0.8% to 63,800 from November, remaining static year-on-year.
First-time conversion rates decreased slightly, by 1.9% to 77.7%, from November, meanwhile, with the first time premium 7.6% down on November’s -£145 at -£156.
Louise Wallis, head of NAMA, said: “Auction activity declined overall in December which is normal for the time of year. Lower demand for cars affected conversion rates and hammer prices.
“The New Year has started to see better results, and there is a good supply of vehicles giving buyers a wide choice.
“Demand has been picking up since the first week of the month, which should help values and conversion rates”.