Auction companies are predicting that values for used petrol and diesel cars will remain strong as the country emerges from lockdown and consumer confidence improves.
The National Association of Motor Auctions (NAMA) has found that 78% of respondents to its recent survey believe petrol values will increase in the coming month, with the remaining 22% expecting values to stay the same.
Diesel values are mostly expected to stay the same too, according to 55% of respondents, while the remaining 45% predict an increase.
NAMA survey results have also revealed that 88% of respondents are expecting auction volumes to increase. This, coupled with 100% of respondents expecting both first-time and average conversion rates to either increase or stay the same, is a great indication that the market remains buoyant and consumer confidence remains strong.
Louise Wallis, head of NAMA, said: “Auctions are benefiting from retailers buying vehicles to stock their forecourts to meet strong consumer demand for used cars following the easing of lockdown restrictions. The next few weeks is expected to see a continuation of a strong used vehicle market with auctions being key to its success”.
Demand for used diesel cars drove prices to record hights during the first quarter of 2021, according to Autorola.
It’s latest online remarketing report shows prices rose to a record of £14,769, from £13,847 in Q4 2020, a rise of 6.6% (£922) at an average age and mileage of 33 months and 25,437 miles.
Equally, used petrol prices remained consistent in Q1, rising by an average of 2.6% (£286) from £10,706 in Q4 2020 to £10,992 as average age rose from 32 to 34 months and average mileage fell from 19,336 miles to 17,961 miles.
Shoreham Vehicle Auctions’ (SVA) managing director, Alex Wright, said that used car values had risen in recent months as the end of COVID-19 ‘Lockdown 3’ loomed large, adding that car retailers were now “itching to get back” into auction halls and replenish stock.
BCA’s chief operating officer, Stuart Pearson, meanwhile, revealed that sold prices had increased significantly in March as dealers stocked-up in anticipation of “a potentially significant uptick in retail demand.”
Earlier this month Cap HPI reported that used car values had reached a “tipping point” in March with prices rising for the first time in five months.
Its valuations experts said that last month had brought a 0.1% value increase at the crucial three-year point following a series of drops at an average of 2%.