Used values up in September but issues remain with demand
The report shows that during September, average values of used cars sold at auction across the board increased from £4,624 to £4,718, equivalent to a 2% increase. Values for fleet cars recorded a 3% increase.
Year-on-year, the average price of cars at auction has increased by 1% from £4,718 this September compared to £4,672 a year ago – this is the first time this year when prices increased by as much as 1%. However, NAMA adds that this is a normal trend for this time of year and the market will begin to wane from now on.
Total sales were fairly constant between August and September but sales were much lower in the fleet sector.
However, NAMA adds that this situation is already reversing in October as firms ramp up their de-fleets.
Mike Pilkington, NAMA committee member, commented: 'The auction market is in a state of rapid change as entries increase week-on-week. This is coinciding with a shrinking trade demand. This is the normal trend of the market at this time of year but the question is whether the extent of any Q4 downturn will be more extreme this year.
The belief is that, with the additional demands being placed on consumers’ disposable incomes, the retail market is not about to improve.'