“December was a positive month for NAMA Auction members and January has been even stronger for both prices and conversion rates. As a whole, members are optimistic and expect the market to remain stable,” said Paul Hill National Association of Motor Auctions (NAMA) spokesman, following a meeting this week (Tuesday 17 January 2023) with key industry figureheads to discuss current market conditions and provide views on future wholesale trading.
The consensus from NAMA members is that the market has been very strong since the start of the year. The market for trade cars below £3500 is particularly popular among auctioneers, with some members reporting record physical attendance and their highest volumes sold since August 2021. Similarly to 2022, cars between £3,500 and £15,000 have good conversions. Whilst over £15,000 products are strong, appetite is gradually fading from consumers in comparison to previous months.
The commercial vehicle market is down on volumes compared to expectations, in turn helping to maintain values at a strong level. This can be attributed to reports suggesting that some manufacturers are cutting their supply of new vehicles to daily rental companies.
The one area of the market that continues to be under pressure is Electric Vehicles, with values continuing to fall. On average, cars in this sector have eased by 4% since the start of the year. It is important to note, however, that EVs make up a small proportion of the overall market which means the drop in their values is having little impact on the market as a whole.
Paul Hill added: “Expectations in the industry is that new car volumes are likely to increase in 2023, particularly for some manufacturers that are experiencing an ease in their supply chains, this should mean there will be more readily available stock for auctions. With regards to consumer demand, the increase in interest rates may impact retail buyers as finance becomes more expensive but retailers are confident that stock will continue to sell.”
NOTES TO EDITORS –
Adam Weeks, Communications Officer
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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.