“Overall, the used car market is in a strong position heading towards the tail end of the year. Whilst the lack of new car registrations in the past two and a half years has stemmed the supply of used cars for forecourts, values reaching record heights has balanced this out. NAMA Members are reporting stable trading, and that the market is in a good position”, said Paul Hill National Association of Motor Auctions (NAMA) spokesman, after a meeting was held this week (Tuesday 15 November 2022) with key industry figureheads to discuss current industry issues.
NAMA Members have reported that the market remains in a good position. November valuations are expected to fall slightly but this is likely to reflect seasonal changes in demand, as opposed to wider economic issues including the cost of living crisis. Trading has not yet indicated that consumers demand has dampened, and there is still an appetite for used car vehicles.
Values of older vehicles, in good condition, are reported to have held up strongly. Similarly, diesel vehicles have been the best performing sector with the least downward trend in values.
Battery Electric Vehicles (BEVs) are considered to be the weakest sector for trading, demand is often hampered by high prices, cost of charging and expensive refurbishment work. As expected, poor condition and high mileage cars equally experience resistance from buyers.
Commercial Vehicles (CVs) are recorded to have been similar to the car market, with all sectors holding up. Supply has been an issue, but this has been matched by reduced demand, which has resulted in a stable CV market. NAMA Members have indicated that January and February could see an increase in stock readily available, but this is likely to be absorbed by the market.
Paul Hill continued: “The used car market is good, and dealers are optimistic for the remainder of the year, contrary to negative media reports. The negative press surrounding the UK’s wider economic issues in the UK, is not helpful and is making the market situation look worse than it actually is.
“The Chancellor will be announcing his Autumn budget this week, which will hopefully stabilise the economy. NAMA members are hopeful that by February, the economic situation will have improved making the market stronger with more buyer confidence.”
NOTES TO EDITORS.
Adam Weeks, NFDA Communications Officer
Direct: 020 7307 3413
Mobile: 0788 003 9897
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.