Used car volumes set to increase in September due to plate change
National Association of Motor Auctions (NAMA) members are positive about the prospects of used cars following the number plate change. “More than 80 per cent of NAMA members are expecting vehicle volumes to increase or remain steady in September. The increase will be promoted by the number plate change with both dealer part-exchanges and leasing company de-fleets arriving at remarketing centres,” said Louise Wallis, head of NAMA, commenting on the latest figures from NAMA’s market attitude survey.
Similar to last month, respondents are expecting conversion rates to increase. The result suggests that demand for vehicles will continue to increase during the month, even as the supply of cars grows.
Vehicle values are also expected to remain steady, with around 75 per cent of respondents predicting petrol values will remain similar to the previous month and only around 5 per cent expecting a decline. It is interesting to see that for the first time this year, over 30 per cent of respondents are expecting to see diesel values increase.
Values of Battery Electric Vehicles (BEV) are showing some signs of improvement, with over 30 per cent excepting them to rise this 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 almost half of respondents. .
Demand for Euro-6 compliant vans continues to remain very strong with 75 per cent of respondents expecting values of these vehicles to increase. There is little sign that demand for these vehicles is declining as fleets and sole traders continue to replace Pre-Euro 6 vehicles to meet new emission standards being set by major cities.
Wallis continued, “September is likely to see vehicle volumes at remarketing centres increase due to the plate change. However, it is expected that there will be demand for this additional supply, which is also likely to increase conversion rates and values particularly for well presented desirable stock for dealer forecourts.
“There is expected to be an increased demand for electric and hybrid vehicles over the coming months, although petrol and diesel cars will remain popular as well.”