The National Association of Motor Auctions has reported that average used car prices at auction rose by 5% during April as “good wholesale prices led to well-stocked forecourts”.
Louise Wallis, head of NAMA, conceded that demand began to weaken as the month progressed, which was in line with expectations for this time of year, as prices rose and average mileages feel during the month.
NAMA reported an average selling value up 3%, from £5,512 to £5,677 from the previous month, and 12.9% up on last April’s figure of £5,027.
The average mileage of a used car at auction was down by 1.5% from March, to 65,379 miles. This figure was 1.4% on the same period in 2017, however.
The first time premium was £33, down 25% on last month’s figure of -£44.
Wallis said: “Whilst auction activity was buoyant in April, demand began to weaken as the month progressed, which was in line with expectations for this time of year.
“Good wholesale prices led to well stocked forecourts, and having held up well so far this year, auction hammer prices began to soften with evidence that vendors who chose to hold out for the strongest prices, experienced a drop in conversion rates.”
Wallis said that rates were stronger than last year when NAMA noted that an unusual amount of cars had reached auction channels because of changes to new car VED rates.
She added: “With the outlook for auction activity looking positive over the coming months, it will be interesting to see if the market holds up with our expectations.”