“It is extremely positive that the used car market results in Q2 broadly reflect the heightened demand auction houses have been experiencing” according to the National Association of Motor Auctions (NAMA), commenting on the SMMT’s used car figures released today.
In the August edition of the NAMA Auction Market Survey, auction houses reported demand for petrol and diesel vehicles remain strong, with 40% of respondents stating they expected all types of internal combustion engine (ICE) vehicle types to increase, with 60% expecting them to remain the same. These vehicles made up 96.4% of the used car market In Q2.
Figures showed the used car market grew 108.6% in the second quarter of 2021 compared to the same period in 2020 with 2,167,504 transactions. Registrations were up by 6.6% compared to pre-pandemic levels in 2019.
BEV and PHEVs transactions rose by 353.9% and 349.8%, respectively. This significant increase in demand has led to rising BEV values. 45% of NAMA members anticipating the values of this vehicle type to increase. None expected values to decline over the coming month.
Auctioneers have been reporting that strengthening conversion rates and a positive impact on vehicle values is having a strong effect in the used car market. This is expected to continue into Q3.
NAMA believes that as businesses reopened, demand for personal mobility increased and stock shortages in the new car market forced some consumers to turn to used models. The need to fill dealer forecourts with stock ensured strong performance at auctions.
NOTES FOR EDITORS:
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.