Record-breaking auction sales in recent weeks will come to an end without an increase in new car sales.

The warning from the Society of Motor Auctions (SMA) comes after used car demand was up around 20% in January alone.

However, car dealers are now searching for new stock with the SMA reporting that the record-breaking start to the year was at risk of becoming a distant memory as volumes dwindle.

“The auction sector late in 2008 reflected the overall gloomy trend in the retail car sector with price reductions, little activity and very few deals being struck,” said David Scarborough, chairman of the SMA.

“The start of 2009 looked healthier as most auctions had large volumes of cars already carried over from December.

“But we were about to experience a serious and exceptional demand that would outstrip supply immediately.”

With new car sales likely to continue at a much slower pace than previous years, Scarborough expects the demand for used cars to continue.

“We need volume to hit the market once more, bringing a little reality and overall prosperity back to all in the motor trade,” added Scarborough.