The National Association of Motor Auctions members are expecting used car volumes to stabilise in June, due to a lower number of new car registrations in April and May which led to a reduced number of cars coming through to remarketing centres from dealers and fleets, according to the latest NAMA’s market attitude survey.
Almost 30% of members are expecting volumes to decrease or stay the same as the previous month. Findings also show that members expect to see petrol and diesel car values soften. 47% of respondents expect diesel values to fall, with a further 52% anticipating them to remain the same as the previous month. Petrol values are set to remain steady by over 50% of those taking part in the survey. However, whereas last month 31% believed values of petrol cars would increase, only 12% think values will rise this month. Values of Alternative Fuel Vehicle (AFV) which include hybrid and electric vehicles are also thought to remain steady during June.
Average age and mileage look set to remain steady this month, with almost 70% of respondents indicating the month will see a similar trend to May.
The Euro-6 market is anticipated to remain strong with over 40% of members expecting an increase in values and over 50% expecting values to remain stable. The continued growth of Low Emission Zones is expected to keep demand for these vehicles strong. In the pre-Euro-6 market, half of the respondents are expecting to see values of remain steady or increase.
The auction market appears to be stable even though car values have been softening in recent weeks. Vehicles which are presented well and competitively priced are still in demand to fill dealer forecourts. Any decline in vehicle values should be seen in the context of very strong prices over the past year, which could not continue at those levels without some correction.