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Demand for used cars in line with expectations in December

NAMA 10/12/2019

“Almost half of respondents in this month’s NAMA survey are expecting volumes to fall over the coming month. Volumes of vehicles arriving at auction centres generally reduce towards the end of the year, and this year appears to be no different,” said Louise Wallis, Head of the National Association of Motor Auctions (NAMA), commenting on the latest figures from NAMA’s market attitude survey.

38% of remarketing centres expect conversion rates to improve, with just 8% expecting them to decrease.  First time conversion rates are also expected to improve by over half of those who completed the survey. This would suggest that with volumes stabilising there is a strong demand for the vehicles available to buy.

Vehicle values are expected to remain steady, with over 80% of respondents predicting petrol values will increase or remain similar to the previous month and 75% predicting the same with diesel. No respondent suggested petrol values would fall and just 18% thought diesel values would decline. In terms of hybrid and electric vehicles values, respondents indicated they too would remain steady.

Values of Battery Electric Vehicles (BEV) continue to show signs of improvement, with 18% excepting them to rise this month, however the majority of respondents are expecting to see similar levels to November.  Values of Hybrid and Plug-in Hybrid both appear to be stable according to over half of participants. 

Euro 6 vans continue to perform strongly with almost 62% of respondents expecting values to increase or remain steady.  This market has shown strong performance during the year and this looks set to continue into 2020.  Pre-Euro 6 vans are generally expected to remain stable but over 30% of those responding expect their values to increase.

Wallis continued, “December is typically a quieter month for auctions with lower volumes of activity. 

“We continue to see demand for good quality vehicles, which with the lower volumes will push conversion rates and values up. NAMA members expect to see a strong used car market in the new year.”

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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.