Values of used cars are under pressure in December as carmakers continue to push for market share in the new car market in Q4.
The National Association of Motor Auctions (NAMA) said the pressure would continue into 2016
“Values for December are under pressure with increased volumes of stock and reduced demand. It is anticipated that most vendors will not be holding stock over the year end in anticipation of higher values in the New Year.
“2016 will certainly bring with it more vehicle returns for the first quarter and a continued fight by the manufacturers for increased volumes in the new car market,” said NAMA chairman Paul Hill.
NAMA was commenting as it produced its market report for November. It showed that the average sales price in November increased by 3.6% from October 2015 to £5,637 from £5,441.
Sales volumes for November declined by -11.8% in comparison to last month. In terms of a year on year comparison, vehicle auction sales rose by 14.9% from 88,288 in November 2014 to 101,453 in November 2015.
The percentage of vehicles sold first time in November fell from 80% in October to 77%, a fall 3%. In comparison to November 2014 the first time conversion rate increased by 1% from 76%.
The price premium for vehicles sold first time fell from £250 to £175, and the average days on site increased to 8.4 from 7.4 days.
