The National Association of Motor Auctions (NAMA)has seen volumes of cars sold through its members grow by almost 50% in two years.
The growth is due to increasing volumes of part exchange cars aged 6.5 years older, it said.
At the launch of its new format Data Report, NAMA said top condition cars continued to the most desirable at auction.
Under its grading system, a grade 1 (top condition) car is worth 17% more at auction than a grade 5 (poor condition) vehicle. This discount is just enough for cost price refurbishment.
NAMA said with more vehicles entering the market, this will rise to 25% as poor condition vehicles find it more difficult to find buyers, creating a more polarised market.
Its research showed that poor condition vehicles sell better in summer than winter as bodyshops have excess capacity.
It added that there was no sign of any slow down in van prices due to ongoing supply shortages.
Richard Parkin, director valuations and analysis Glass’s, said used car prices were showing signs of weakness but said the market was in for a “soft landing”.
Source: Motor Trader
