AUCTION MARKET IS STRONG AND STEADY, NAMA REPRESENTATIVES REVEAL    

“The auction market overall is very strong with prices achieved and conversion rates showing very healthy levels of demand with the ability to absorb supply. The outlook remains positive with a note of caution regarding a change in market conditions at Easter," said Paul Hill, National Association of Motor Auctions (NAMA) spokesman, following a meeting this week (Tuesday 20 February 2024) with NAMA representatives.

The discussions revealed a notable trend of strength and stability across various segments of the market, with only specific segments experiencing challenges. While certain segments, like Land Rover Range Rover, are impacted by customer insurance concerns, the Tesla Model 3 emerged currently as the fastest-selling car, indicating shifting consumer preferences.

In the wholesale car sector, stability prevails with minimal upward movement observed. However, fleets display a mixed performance, with some exhibiting remarkable strength while others face uncertainties, particularly concerning older vehicle models.

Retail sales present a positive picture, with values showing a commendable increase compared to the previous month. Nonetheless, a notable lag between retail and trade prices suggests a potential adjustment period in the near future.

Regarding Light Commercial Vehicles (LCVs), the market maintains a steady trajectory, however challenges persist in the electric vehicle segment, necessitating efforts to stimulate interest in used EVs.

Paul Hill concluded: “NAMA participants echoed a sentiment of optimism, emphasising the importance of maintaining a symbiotic relationship between vendors and buyers to sustain the market's current momentum.

Crucial factors for vendors include emphasising the significance of utilising NAMA remarketing partners' services to assist with

• Correct vehicle descriptions and, where possible, all options listed
• Consider a fresh MOT if less than six months remain
• Ensure the V5 and service history are present at the point of sale
• Tactical refurbishment to enhance the grade of a vehicle will always provide a return on investment
• Clean vehicles with history and full documentation pack will always sell faster and provide a higher return versus guide price.