“Overall, the used car market is in a strong position heading into the tail end of the year. Whilst the lack of new car registrations the past two and a half years has stemmed the supply of used cars for forecourts, values reaching record heights has balanced this out. NAMA Members are reporting stable trading, and that the market is in a good position”, said Paul Hill National Association of Motor Auctions (NAMA) spokesman, after a meeting was held this week (Tuesday 15 November 2022) with key industry figureheads to discuss current industry issues.
NAMA Members have reported that the market remains in a good position. November valuations are expected to fall slightly but this is likely to reflect seasonal changes in demand, as opposed to wider economic issues including the cost of living crisis. Trading has not yet indicated that consumers demand has dampened, and there is still an appetite for used car vehicles.
Vales of older vehicles, in good condition, are reported to have held up strongly. Similarly, diesel vehicles have performed the best with the least downward trend.
Battery Electric Vehicles (BEVs) are considered to the weakest sector for trading, demand is often hampered by high prices, cost of charging and expensive refurbishment work. As expected, poor condition and high mileage cars equally experience resistance from consumers.
Commercial Vehicles (CVs) are recorded to have been similar to the car market, with all sectors holding up. Supply has been an issue, but this has been matched by reduced demand, which has resulted in a stable CV market. NAMA Members have indicated that January and February could see an increase in stock readily available, but this is likely to be absorbed by the market.
Paul Hill continued: “The used car market is good, and dealers are optimistic for the remainder of the year, contrary to negative media reports. The negative press surrounding the UK’s wider economic issues in the UK, is not helpful and is making the market situation look worse than it actually is.
“The Chancellor will be announcing his Autumn budget this week, which will hopefully stabilise the economy. NAMA members are hopeful that by February, when the economic situation has improved, the market will be strong and buyers will have more confidence to buy.”
