NAMA Report May 2014

Published 10/06/2014 00:00:00 in Press Releases

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

The report shows that during May the average value of used cars sold at auction across the board rose 5.2% from £5,153 to £5,420.

Overall volumes were down - 5% compared to April, despite the same number of working days and volume declines were seen primarily in older profile cars (>4.5 years old).

In line with seasonal expectations, first time conversion rates continued their downward trend from 75% to 73% as a greater proportion of younger (<6.5 years old) cars failed to sell first time.  However, conversions for older cars (>6.5 years old) improved, supported by falling volumes.

Price changes in May compared to April, by age profile

 

Apr-14

May-14

Diff %

Late & Low

£14,900

£14,725

-1%

Fleet

£8,975

£8,725

-3%

PX (Young)

£5,425

£5,400

0%

PX (Old)

£2,575

£2,600

1%

Budget

£775

£775

0%

 

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

 

Despite rising average age and mileage, average values for the older (>4.5 years old) age profiles were significantly low, supported by falling volumes. By contrast, average values for younger (Late & Low, Fleet) profile cars came under pressure despite further falls to first time conversion rates.

Paul Hill, NAMA Chairman Comments, “New car sales continue at unprecedented levels for the time being pushed further and faster by the manufacturers eager to keep new car stock levels across Europe at a manageable level. However, in recent weeks the used car market has shown a slight fluctuation with a drop in retail interest that appears to have coincided with both the bank holiday weekends and the improvement in the weather.

 “The sub £5k market remains specifically strong and there is good demand for smaller cars that give the lower running costs that help keep monthly household costs at an acceptable level. Equally there is specific strength in the specialist market over and above £15k where buyers are looking for second cars or something a little different. Weakness lies in the late plate low mileage sector which is still being affected by the fantastic offers on new cars that draw buyers away from used examples.

 “The latter part of June may see a mild drop in Retail activity and this will be as a direct result of the World Cup. Previous major sporting events of this type have tended to have an adverse impact on used car sales as the nation rallies to support their team of choice although demand tends to return to previous levels following the event. There is also a high chance of pent up demand in the following weeks which may result in a spike in values”.

 

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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