NAMA members and the valuation guides met on 19 September 2023 to discuss current market conditions and give views on the future outlook for wholesale trading.

NAMA Members have reported that the market is steady, and there is strong optimism that this will maintain for the remainder of the year. There have been cases of seasonal trends and overall auction members have been particularly pleased with the busy summer.

Whilst the market is moving at a steady pace, values compared to 12 months prior are down -0.5% and values have dropped 6% over the last 3 months. This is predicted to continue the way it is for the remainder of the year.

For the car market, values are stable, particularly for good-quality internal combustion engines. Demand has been impacted by the holiday seasons, but we are starting to see other external factors, such as the broader economic climate and cost-of-living crisis, having an effect on the demand for cars north of 10k.

The Light Commercial Vehicle (LCV) market is still attracting buoyant demand. Volumes reduced in August, but not dramatically, and now they are building again in September. Members reported that the disparity between highest and lowest values seem to be widening every month, highlighting that condition and mileage are key for LCV buyers.

For electric products, values have been falling for some time and auction members expect that by the end of the year it will have reached its curve. The taxi market is a particularly strong suit for picking up desirable electric vehicles. With the constant influx of new EV products entering the market, technology is consistently improving; This is having a knock on effect with used EVs with older technology products proving more difficult to sell.

Overall, NAMA auction members are pleased that volumes are now improving which is typical for September with the influx of new number plates. As a whole, cars and LCV products are performing well and there is certainly more of a buzz around forecourts for electric, with demand gradually improving. There have also been notions of dealers checking for ULEZ-compliant cars.

Paul Hill, NAMA Representative stated: “Trading is predominantly steady even though the market has dropped 6% in the last few months. Historically, this would have been a cause for concern among members, but the consensus is that these trends are to be expected and suggests that the market is in a transition of ‘realignment’”.