More than 80% of NAMA members are expecting vehicle volumes to increase or remain steady in September. The increase will be promoted by the number plate change with both dealer part-exchanges and leasing company de-fleets arriving at remarketing centres.
Similar to last month, respondents are expecting conversion rates to increase. The result suggests that demand for vehicles will continue to increase during the month, even as the supply of cars grows.
Vehicle values are also expected to remain steady, with around 75% of respondents predicting petrol values will remain similar to the previous month and only around 5% expecting a decline. It is interesting to see that for the first time this year, over 30% of respondents are expecting to see diesel values increase.
Values of Battery Electric Vehicles (BEV) are showing some signs of improvement, with over 30% excepting them to rise this month. The increase in BEV values is expected to be driven
by shortage of supply of new vehicles pushing buyers into the used market. Values of Hybrid and Plug-in Hybrid both appear to be stable according to almost half of respondents.
Demand for Euro-6 compliant vans continues to remain very strong with 75% of respondents expecting values of these vehicles to increase. There is little sign that demand for these vehicles is declining as fleets and sole traders continue to replace Pre-Euro 6 vehicles to meet new emission standards being set by major cities.
September is likely to see vehicle volumes at remarketing centres increase due to the plate change. However, it is expected that there will be demand for this additional supply, which is also likely to increase conversion rates and values particularly for well-presented desirable stock for dealer forecourts.
There is expected to be an increased demand for electric and hybrid vehicles over the coming months, although petrol and diesel cars will remain popular as well.