“Traditionally, December is considered to be the quietest trading month of the year with consumers focusing on the festive season. Nevertheless, buyers have remained active in December, making trading feel like a normal month for many and auctioneers are confident this will continue into 2023”, said Paul Hill National Association of Motor Auctions (NAMA) spokesman, following a meeting this week (Tuesday 20 December 2022) with key industry figureheads to discuss current industry issues.
As the year draws to a close, NAMA members gathered for their final market report for 2022. Overall, auctioneers were content with trading results, reporting the market to be in a steady position. Whilst there have been signs of slight falls in valuation, there have been no dramatic disturbances which makes for a stable market. Members predict as little as a 1% or 2% fall in book value, reflecting a very normal market for this time of year.
Members report a strong level of stock at a good quality, which are selling well off forecourts. However, there is currently very little evidence of dealers stocking up for the new year.
The tail effects of the pandemic and wider issues relating to conflict and chip shortages has seen supply for new vehicles become a prevalent issue for the automotive sector. However, used car values are very strong off the back of this. Members expect there to be a continuing shortage of 3-year-old stock, which could see values rise further if demand remains steady.
Commercial vehicles have performed strongly as a whole, and far better than expected. CVs in very good condition are particularly popular with dealers and are returning good margins.
Whilst Electric Vehicles have seen the greatest drop in values, they generally make up a small proportion of the market, so this is having a very little impact on the overall market strength.
Paul Hill added: “The expectation for January is that the market will remain in this steady position. The broader economic climate will have the greatest impact on spending habits, as we enter a difficult period with energy prices and cost of living price rises. With the increases in interest rates, this may impact retail buyers as finance becomes more expensive.”
“However, currently we are not experiencing a fall in demand and used car appetite is strong.”
ENDS –
NOTES TO EDITORS –
Adam Weeks, Communications Officer
Direct: +44 (0) 20 7307 3413
Mobile: +44 (0) 7880 039897
Email: adam.weeks@rmif.co.uk
