THE RETAIL MARKET IS MANAGING NEARLY NEW EFFECTIVELY

Published 20/11/2015 00:00:00 in Press Releases

There is increasing evidence that dealers are managing the growth in nearly new stock very effectively with a fall by over 20 per cent in volumes of vehicles under 2 years old available through the NAMA network in October.

“The capacity of retailers to absorb an increase in the nearly new market is important to sustain residual values. A sustained increase in such stock into the remarketing cycle would clearly be a concern. Encouragingly, the latest NAMA data suggests that that this is not the case,” observes NAMA Chairman Paul Hill.

Whilst concerns of over-supply of nearly new stock into auctions have been unfounded to date; it remains important to recognise that the supply/demand situation is finely balanced. Less stock may have come to market in October, but demand also lightened with a 6 per cent fall in first time conversions. Tellingly, the vehicles under 2 years old category saw a shift towards younger stock. Nevertheless, as Hill concludes, much of this slowing of demand is in line with a welcome return to classic seasonal trends;

“Seasonality is certainly reflected in lower month on month demand for nearly new stock and this reduced demand is evident across most age categories. Our overall confidence in the resilience of the market is derived from a strong year on year increase in remarketing activity. Overall sales this October were up an impressive 12 per cent on the same period in 2014. It does seem that we are seeing sustained consumer confidence feeding through into higher used vehicle sales activity.”

 

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.

Rupal Rawal, Press 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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