“Despite the challenges currently facing the automobile industry, the auction market is in a positive state. Supply and demand have been stable for the last month, with summer soon to draw to an end. We are expecting that September will see a steady surge as customers return from holidays, boosting the market”, commented Paul Hill, National Association of Motor Auctions (NAMA) spokesman, after a meeting was held this week (Tuesday 16 August 2022) with key industry figureheads to discuss current industry issues.
It is well documented that the automobile industry has faced unprecedented challenges, however, supply and demand has remained relatively stable. The supply of used vehicles is in short supply, this has had a knock-on effect for part exchanges, which form a vital part of many of our members’ revenues.
The energy crisis has also had an adverse effect for our members, with diesel vehicles experiencing significant falls in value compared to petrol. AFV vehicles, as expected, have increased. Members have expressed concern that the sharp increase in prices has led to reduced margins.
The commercial vehicle market has returned to normal levels, reflecting the seasonality of the market share. NAMA also highlighted difficulties over the levels of stock, with fewer vehicles reaching their dealerships. However, higher quality stock and EVs have experienced a positive increase. For fleets, current shortages mean that they are rehiring their vehicles in order to compete with demand.
Paul Hill continued: “It has been disappointing to see consumers being discouraged from the used car market due to sensationalist and ill-informed reporting. Without widespread support, our industry will suffer.
“NAMA recognises that overall the market is in a positive state and expect it continuethrough the next quarter.