“It was extremely positive to see so many NAMA Members and wider industry experts actively involved in this months’ market meeting. As a whole, Members are pleased with how trading is progressing into the third month of the year, conversions are strong and values are high”, said Paul Hill National Association of Motor Auctions (NAMA) spokesman, following a meeting this week (Tuesday 21 March 2023) with key industry figureheads to discuss current industry issues.
Data figures highlight the strength of the used car auction market. Supply line is improving, with reports of circa 10% increase year-on year, however this is not negatively impacting values. For instance, there is an increase in the value of 3-year-old / 60K cars of 0.6% overall. Pent up demand is the likely reason for values not being impacted by the volume increase. Petrol and diesel engines are still the most sought-after product line, reporting its strongest movement in March since 2009. Data reveals continued weakness for electric vehicles, down 4.3% month-on-month.
The car market is in a good position, particularly when vehicles are presented and valued correctly. Grade 1 vehicles are proving to be “hot off the shelf” with high conversion rates. Whilst there is generally still a shortage of stock, although improving, members are reporting that good quality cars with good prevenance will sell straight away.
For light commercial vehicles, the market has remained steady. Members are reporting buoyant demand, particularly for fleets. Pick-up trucks have started to improve, following their slump in recent months.
Following subdued demand for used electric vehicles, members have dropped values to help encourage sales. Month-on-month, sales of BEVs have fallen 9%. From a retail perspective, BEVs are performing well and sales are up.
Paul Hill added “NAMA Members are pleased with how the market has performed, and continues to perform, particularly in the light of concerns related to economic instability. A similar theme persists that good quality vehicles are easiest to move. Well presented and well prepared stock being entered into the competitive environment of auction have the highest conversion rates and will perform well against the industry pricing benchmarks.”
NOTES TO EDITORS -
Adam Weeks, Communications Officer
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