This month members of the national Associations of Motor Auctions (NAMA) held a meeting to discuss market conditions.

Members discussed that the demand for used vehicles has remained low which is attributed to decreased discretionary income caused by the cost of living crisis. Nevertheless, current consumer behaviour is not affecting values due to supply constraints across the market directly impacting the auto retail and auto manufacturing industry.

Predictably, used car values are predicted to fall marginally, by under 1%, after signs the market has picked up over the last two weeks” Paul Hill, NAMA Advisor commented.

In terms of current values, older cars and those needing cosmetic repair are faring much worse whilst those under five years old are coping exceptionally better.

Following exceptionally high values during the pandemic, we will likely see seasonality in the van market during July and August for the first time since the pandemic. However, there are concerns that the market will be hit by issues in the wider economy.

“Demand for used vehicles has been affected by numerous factors including constrains in the supply chain, the cost of living crisis, and vehicle preference. Some vehicles are performing better depending on its fuel type, age, and condition. Going forward, NAMA members remain optimistic, the market cannot be described as normal, though it is not a major problem at present.