The used car and van markets are demonstrating strong and promising signs for the new year, according to the National Association of Motor Auctions (NAMA).

The used car market is in a strong and healthy position, according to NAMA members

In the first market meeting for 2025, NAMA members reported that the car market is in a strong and healthy position. Overall price movement is negligible, with prices generally level, aided by a strong retail market with search activity up 4% on January 2024.

Older, higher-mileage vehicles have improved on their year-end position.

The market is also seeing an increase in search activity for diesel; up 10% on January 2024.

But battery electric vehicles (BEVs) have shown slight weakness, down by 0.7%, while PHEVs are down by 0.5%.

The current positive momentum is expected to continue over the coming months, although vehicle condition remains a key factor in ensuring strong performance.

NAMA members observed a mixed performance in the LCV segment. The older market is experiencing more negative trends than positive ones, while the sub-five-year-old market is seeing better stability.

Members reported strong performances in areas where product is in short supply whilst parts of the market have been weaker overall, particularly with damaged stock.

A key factor is the upcoming change in Benefit-in-Kind tax treatment for double cab pickup trucks, set to take effect in April 2025, as announced in the 2024 Autumn Budget.

Paul Hill, spokesperson for NAMA, summed up: “Despite some challenges, the market has started the year on a positive note, with a strong overall performance in January 2025. We anticipate this positive momentum to continue through the first quarter.”