Conversion rates set to improve in August, predict NAMA members
The latest National Association of Motor Auctions’ market attitude survey has found that more than 50 per cent of members expect conversion rates to increase in August. “This has been assisted by the volume of vehicles coming though remarketing centres which has meant buyers have had less vehicles to choose from and has in turn increased conversion rates of those vehicles that are available to buy,” said Louise Wallis, head of NAMA.
Fewer than 10 per cent of respondents are expecting conversion rates to fall which is a notable improvement from recent months, where rates have been weaker and the expectations in the survey have been for conversion rates to decline.
Vehicle values are also expected to stay the same with around 68 per cent of respondents predicting petrol values will remain similar to the previous month and just 12 per cent expecting a decline. However, although over half of respondents believe diesel values will remain steady just under 40 per cent believe they will fall. This would indicate the continuing inclination from buyers to purchase petrol vehicles to fulfil consumer preference for these vehicles.
Values of Battery Electric Vehicles (BEV) are showing some signs of improvement, with 20 per cent excepting them to rise this month compared to just 8 per cent last 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 over 80 per cent of respondents.
Average age and mileage look set to remain steady this month, with almost 70 per cent of respondents indicating the month will see a similar trend to July.
The Euro-6 market is anticipated to remain strong with around 40 per cent of respondents expecting values to increase during August. The continued focus on air quality and growth of Low Emission Zones is expected to keep demand for these vehicles strong.
Wallis continued, “The auction market appears to be stable and there has been a reduction in stock coming into remarketing centres which has had a positive impact on both values and conversion rates.
“This trend is expected to continue through August ahead of the plate change at the start of September when volumes will start to increase from dealer part-exchange vehicles.”