During November, the average value of used cars sold at auction across the board increased 4.1% from £5,199 to £5,413, while the total volume of sales dropped 11.8% from 107,678 units to 94,957 units, according to the National Association of Motor Auctions (NAMA).
Total transactional activity declined in November across most of the trade market.
Younger vehicles (sub-0.5 and 1.6 to 3.5 years) increased in volume, with the exception of the youngest category - this is more of a re-balance due to a quiet October.
All other age segments fell 15% in volume, on average. Nonetheless, this still represents a strong performance for this time of year
November when compared to the previous month. Consequently this has suppressed prices for all but the ‘Budget’ age category (+3% month-on-month) where a fall in volume has helped offset a declining age/mileage profile.
Once again conversion rate dropped for all segments in November with the older profile vehicles (‘PX’ and ‘Budget’) giving the best results relative to the previous month’s respective performances.
The time of year, the declining condition of age and mileage and the relatively high November volumes flowing through auction houses have been key factors in the decline of conversion rates; allowing buyers to pick and choose their vehicles.
In November, premium SUVs continued to climb upwards in price. Lifestyle 4x4s declined slightly in price which can be attributed to an increase in average mileage, and brings the category closer to the annual average after an especially good October where average mileage dropped to its lowest value of the entire year.
Justin Lane, NAMA Chairman Comments, “The retail market continued to show good levels of demand until the third week of November when activity began to tail off as expected.
“The month’s most significant gain in volume came in the typical fleet profile 2.6 to 3.5 year age range. 14,694 vehicles were sold, representing an uplift of 827 units (6%) over the previous month and 3,364 vehicles versus the previous year.
“It also marked the highest volume sold for the age segment in one month.
“Conversion rates fell to an average of around 72%, with the only segment showing any form of resistance being the older PX vehicles which fell by 3% versus the previous month.
“The first couple of weeks of December will see a continuation of the suppressed demand, whilst the general public focus their activities on Christmas rather than a replacement car. This is not a reflection on economic changes, rather the natural course of events experienced every year.
“We anticipate that January should see a strong start to the year as usual and this will inevitably result in high conversion rates and unexpected trade activity.”
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