“Used car volumes are expected to increase in May as vehicles continue to come through from dealer part-exchanges and corporate de-fleets,” said James Tomlinson, Chairman of The National Association of Motor Auctions (NAMA), commenting on the latest figures from NAMA’s market attitude survey.
As volumes increase, auction houses are expecting first time conversion rates to fall as buyers have more cars to choose from. This is normal for this time of year following the plate change, and suggests the market is following the usual trend as the supply of vehicles grows.
Findings show that most auction houses expect to see petrol and diesel car values remain stable, with less than 20% of respondents expecting a decrease in petrol prices and 32% expecting a drop in diesel. Values of Alternative Fuel Vehicle (AFV) which include hybrid and electric vehicles are thought also to remain steady during May.
Average age and mileage look set to remain steady this month, with over 55% of respondents indicating the month will see a similar trend to April.
The Euro-6 market looks set remain strong with almost 40% of members expecting an increase in values and over 60% expecting values to remain stable. The continued growth of Low Emission Zones is expected to keep demand for these vehicles strong. In the pre-Euro-6 market, almost 70% of respondents are expecting to see values of remain steady or increase.
Tomlinson continued, “It is encouraging to see that auction houses are optimistic that the strong used car market we have seen so far in Q1 is set to continue this month.
“So far the market has performed in line with our expectations in 2019 with values remaining strong and high attendance at auctions with professional buyers bidding competitively across all market sectors, both at auction and online."
About the RMI
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.