Wholesale vehicle market remains strong in July, vans driving momentum

The wholesale vehicle market continued its strong performance in July, according to the latest update from the National Association of Motor Auctions (NAMA), with light commercial vehicles (LCVs) leading the charge and conversion rates remaining high.

"The wholesale market remains in strong shape, with high conversion rates, good stock turn, and continued buyer appetite," said Paul Hill, NAMA spokesperson.

Despite seasonal pressures such as summer holidays and fluctuating retail conditions, the trade market has proven resilient.

NAMA members report stable pricing across most fuel types, with only a marginal -0.3% dip in overall prices -significantly better than the seasonal average decline of -1%.

Conversion rates remain elevated, particularly for well-graded stock, and while demand remains strong across the board, ongoing supply constraints are limiting the availability of some vehicle types.

The standout performer in July was the LCV sector. Many auction houses reported their best conversion rates for vans so far this year, as buyer demand continued to outstrip limited supply.

Notably, used electric LCVs outsold diesel models for the first time this year in terms of speed to sale, according to data from AutoTrader.

This suggests a growing appetite for electrified vans among trade buyers, likely driven by tightening emissions regulations and improved buyer confidence in electric drivetrains.

While electric vehicles (EVs) are still adjusting to their place in the used market, depreciation is beginning to slow. Values for used EVs fell by -1.2% in July, a gentler drop compared to previous months.

Plug-in hybrid and electric vehicles aged 3-5 years are showing healthy performance, both in value retention and speed to sell. However, nearly-new EVs under 12 months old continue to face slower conversion, as buyers remain tempted by strong incentives available on brand-new models.

The government's recent reintroduction of EV grants for new cars has been welcomed by the sector. However, NAMA is calling for additional support aimed at used EVs and the commercial vehicle segment.

“While we welcome further investment in EV adoption, we would encourage government to consider how incentives might also support the used EV and LCV markets, which are critical to broader electrification goals,” Hill said.