It’s good news from the National Association of Motor Auctions (NAMA), their latest figures showing a slight upward shift in sale price for the average used car, up 0.9% to £5,441 from £5,263 in October.
Its monthly report also revealed sales volumes were up in October, by 2.4% compared to September 2015. That’s a rise of 12% when compared to October last year when auction vehicle sales topped 102,707 whilst October 2015 saw volumes of 114,986. And October was the third highest month for car sales at auction this year.
The report is divided into five market sectors with four seeing sales price growth last month, only ‘late and low’ fell in price, when compared to the same month in 2014. The other sectors – fleet; PX young; PX old; and budget; all experienced a sales price growth. The volume of late and low cars decreased by 21.9% compared to September, although it was still a rise of 15.3% compared to October last year.
Even though budget cars are still high in volume, these cars are continuing to maintain their price as they have done throughout the year, the report finds. Sales of budget vehicles increased 14.9% in October compared to September.
Elsewhere it seems 4x4s are doing well in the used car market. For November, Glass’s ‘hot five’ are the Dacia Sandero Stepway, Hyundai Tuscon and Vauxhall Antara which again shows the popularity of 4x4s among car buyers especially as the colder nights draw in and driving conditions worsen in the winter months. The Glass’s Hot Five is based on 300 models, all of which have been subject to more than 50 price observations over a four-week period.
Using DVLA statistics, Auto Trader reports a buoyant used car market with transactions up by 3% year on year during the July to September period for 2015 whilst year to date, used car transactions are also up having increased by 4.2% or an almighty 225,000 units.
Much of the used car growth is as a result of the recent new car registration increases as motorists part-exchange their vehicles. However, with new car registrations experiencing their first decline in more than three-and-a-half years, even if it was only a 1.1% drop, it has halted the record 43 consecutive months of growth for new car registrations. The new car market is still looking good, the number of registrations so far is 6.45% up on the same time last year and it is the best year to date performance on record and NAMA expects manufacturers to continue to push for more registrations in the remainder of 2015.
There is, however, a slight word of caution, NAMA predicts fleet volume will be seen at auctions as we near the end of the year whilst dealers are also likely to be clearing out their overage stock and unwanted part exchange vehicles. Meanwhile, pressure from manufacturers for dealers to register new vehicles will also provide additional used car stock at the auctions. Combined, these factors will cause used car values to fall towards the end of the year, warns NAMA.