NAMA: Prices will continue to slow over coming months
A notable feature of the fleet sector is that prices have been remarkably consistent since September 2011. The average price of a 2.6 to 4.5 year old vehicle is £25 higher than it was 7 months ago.
Andrew Hulme, NAMA chairman commented: 'The April results show that the key indicators of market health are down. There was a 2% overall price reduction for all cars sold in the month, sales reduced by 9%, conversion rates fell and the average number of days that cars were spending on site increased.
'However it is important to remember that these changes are typical for this time of year. April saw the usual influx of ex-fleet cars while trade buying activity has slowed. This is due to dealers experiencing a normal slowdown in retail sales therefore the need to replace stocked has tapered,' he added. @[email protected]
Mike Pilkington, NAMA committee member commented: 'The first 10 days of May have witnessed a steady decline in trading conditions as stocks remained high in comparison to trade demand. Also a large proportion of the unsold vehicles are cars that require more than the normal refurbishment to make them fit for sale.
'NAMA expects prices to continue to slow for the next few months. However this is in line with what is expected for this time of year,' he added.