NAMA Report July 2014

Published 14/08/2014 00:00:00 in Press Releases

The National Association of Motor Auctions (NAMA) published its monthly market report today for July. 

The report shows that during July the average value of used cars sold at auction across the board increased 4% from £5,381 to £5,595, a 14% increase versus July 2013 and reflective of the higher proportion of younger cars now in the mix.

Overall volumes were down 5% versus June at 101,190, but up 1% versus July 2013, and volume decrease was greatest for older PX profile cars (6.6-10.5 years old) and Budget (>10.5 years old) at -7.6% and -10.2% respectively.  This contrasts with Late & Low, which continued its increase by 5.3% to 12,797 cars.

First time conversion rates for sold stock continued its upward trend, increasing from 77% to 79% with improvements across all age profiles as market interest increased.

The premium of first time sold vehicles over those sold at second/subsequent entry held firm at around 7% (£325). After three successive increases in average days on site for sold stock, this indicator fell back slightly for July from 9.2 to 8.7, but still remains higher than July 2013 where it was 8.2.

Price changes in July compared to June by age profile

 

Jun-14

Jul-14

Diff %

Late & Low

£14,575

£14,550

0%

Fleet

£8,575

£8,525

-1%

PX (Young)

£5,175

£5,225

1%

PX (Old)

£2,525

£2,550

1%

Budget

£750

£775

3%

NOTES:    Late & Low are cars from: 0 - 2.5 Years

Fleet are cars from: 2.6 – 4.5 Years    PX (young) are cars from: 4.6 – 6.5 Years

PX (Old) are cars from: 6.6 – 10.5 Years     Budget: >10.5 Years

Falling volumes yet steady buyer interest contributed to the average price increase in the PX and Budget profile segments, although rising age and mileage amongst Fleet profile cars resulted in a net average decline in values achieved. The original cost new percentage for all profiles remains substantially below the value attained during July 2013.

Paul Hill, NAMA Chairman Comments, “Retail activity during July was an interesting mix for both franchised and non-franchised dealers alike.  The early part of the month seemed to be quite active with plenty of calls and good footfall.  However, this changed around the middle of the month and interest waned with dealers citing the improvement in the weather, the Commonwealth Games and the start of the school summer holidays.

“The beginning of August saw a change in fortunes once more and retail activity improved notably for the trade as a whole.  This looks set to continue through to the end of the month and into the first weeks of September. August is traditionally a month of limited defleet activity as buyers wait for the new plate in September.  As such, this creates a challenging environment for the trade buyer and an opportunity for the trade vendors.  Trade buyers have to fill empty spaces on the forecourt and as such will buy just about anything they can to attract buyers. 

“In summary a reasonably good month is expected from a retail perspective, although finding the stock to feed the retail demand will be a little more difficult than usual.  Naturally this means that trade vendors will also benefit from the opportunity to sell the lower quality and repeatedly unsold stock that has been clogging the trade for some months.”

 

 

ENDS

Notes for editors: NAMA is the auction division of the RMI.  NAMA market information is based on data supplied by its National members operating in the remarketing sector. The monthly sample size is up to 90,000 vehicles. The full report is available on request.

Rupal Rawal, Communications Officer
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web: www.rmif.co.uk  Email: rupal.rawal@rmif.co.uk

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.

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