Used car volumes expected to increase in May
The National Association of Motor Auctions (NAMA) expects used car volumes to increase in May through dealer part-exchanges and corporate de-fleets, according to the latest figures from NAMA’s market attitude survey. As volumes increase, auction houses are expecting first time conversion rates to fall as buyers have more cars to choose from. This is normal for this time of year following the plate change, and suggests the market is following the usual trend as the supply of vehicles grows.
Findings show that most auction houses expect to see petrol and diesel car values remain stable, with less than 20 per cent of respondents expecting a decrease in petrol prices and 32 per cent expecting a drop in diesel. Values of Alternative Fuel Vehicle (AFV) which include hybrid and electric vehicles are thought also to remain steady during May.
Average age and mileage look set to remain steady this month, with over 55 per cent of respondents indicating the month will see a similar trend to April.
The Euro-6 market looks set remain strong with almost 40 per cent of members expecting an increase in values and over 60 per cent expecting values to remain stable. The continued growth of Low Emission Zones is expected to keep demand for these vehicles strong. In the pre-Euro-6 market, almost 70 per cent of respondents are expecting to see values of remain steady or increase.
James Tomlinson, chairman of NAMA, added, “It is encouraging to see that auction houses are optimistic that the strong used car market we have seen so far in Q1 is set to continue this month.
“So far the market has performed in line with our expectations in 2019 with values remaining strong and high attendance at auctions with professional buyers bidding competitively across all market sectors, both at auction and online.”