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Used car demand expected to rise in January

NAMA 14/01/2020

“Over half of respondents in this month’s NAMA survey expect an increase in auction volumes,” said Louise Wallis, Head of the National Association of Motor Auctions (NAMA), commenting on the latest figures from NAMA’s market attitude survey. 

Auction volumes are expected to increase by 53% of respondents, with only 20% predicting a fall. Conversion rates are strongly favoured to increase, with 73% believing they will be on the up, and no responses predicted a decrease. First time conversion rates are also expected to improve by 67% those who completed the survey. The strengthening of first-time conversion rates indicates that demand for stock will be strong in January, with much of it being sold at the first time of asking.

Vehicle values are again expected to remain stable, with 77% of respondents predicting Battery Electric Vehicles (BEV) will remain similar to December and 67% predicting the same with diesel. No respondent suggested BEV values would fall and only 13% thought diesel values would decline.

On the other hand, values of Hybrids could see an increase in value. Just under 40% of responses predict that Hybrid values will increase, a big jump from only 11% last month.  Plug-in Hybrids saw a more modest 23% of respondents believe they could increase in value, but the combined figures of all Hybrids may suggest a strengthening in value for the category.

Euro 6 vans remain robust with every respondent expecting values to increase or remain steady. Demand remains strong for these vehicles as drivers and fleets continue to move from their pre-Euro 6 vans and will likely continue throughout the year. Pre-Euro 6 vans value expectations are expected to stay the same or increase, with 47% of respondents believing they will stay the same, and 33% believing they will increase, mostly due to the remaining demand outside of major cities.

Wallis continued, “The first quarter of the year usually sees an active auction market and we expect 2020 to follow a similar pattern. 

“Auctions are expecting vehicle volumes and conversion rates to increase this month but with values generally remaining stable, this should mean that demand for the extra volume should be met.”

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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.