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Auction demand will be high in February, predicts NAMA

Used cars ready for auction

The National Association of Motor Auctions predicts that February will be a “strong month” for auction houses as volumes and conversions rates are expected to increase.

Its new sentiment survey found that a number of auction houses expect a continuation of the 2018 trend of increased values for petrol vehicles, suggesting demand will continue to outstrip supply in this segment.

The used car market reached record heights in 2018 and car auctions saw an increase in first time conversions rates and average values, as the new car market suffered an almost 7% decline.

“February looks set to be a strong month for motor auctions, with the majority of sites expecting both volumes and conversion rates to increase,” said James Tomlinson, Chairman of NAMA.

The latest research found that plug-in hybrid demand is cooling, while 23% of members expect to see an increase in BEV (Battery Electric Vehicles).

It is expected that, in 2019, more used plug-in hybrids and BEVs will appear in auctions, increasing supply and starting to normalise their price behaviour.

NAMA expects that average age and mileage will remain steady over the coming month, although around 30% of respondents to its survey have indicated that both could increase. 

Tomlinson added: “NAMA’s new survey aims to give a monthly insight into the market with data sourced from our members. The first survey which launched this month saw strong engagement with 70% of NAMA members contributing.”

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