October car auction figures show car price decreases
National Association of Motor Auctions (NAMA) figures for October show that average values of used cars sold at auction decreased from £4,718 to £4,558, a 4 per cent decrease. Values for fleet cars recorded a 6 per cent decrease. Year-on-year, the average price of cars at auction has increased just 0.1 per cent from £4,554 a year ago to £4,558 this year.
According to NAMA, the month-on-month price reduction is “somewhat normal for this time of year” as auction houses remarket the influx of supply created by the September plate change. Buying from dealers also reportedly begins to wane as they prepare for the seasonal downturn in retail sales.
Bob Anderson, NAMA committee member commented, “The mix of cars on offer in October was biased towards lower condition grade vehicles. However, dealers were more focused on acquiring stock that required little remedial attention and could be presented to potential buyers without delay. Higher grade vehicles are currently not in high supply and the likelihood is that this situation will not change for the foreseeable future.”
Year-on-year prices stable in October
Unit sales by month from NAMA members recorded year-on-year increases for 8 of the 10 months in 2011. This is not necessarily reflective of a wider supply of cars in the wholesale market, but rather that the auction companies have been successful in winning a larger proportion of the overall market.
Bob Anderson went on to say, “All indications are that the auction market is likely to perform to expectations for the remainder of 2011. We expect to see stock inventories fall steadily between now and the end of the year, with condition grade 4 and 5 cars continuing to be more difficult to sell if unrealistically priced. Trade demand is likely to ease but competition for the best vehicles will remain high.”
Related news:
Comments