The average price of fleet vehicles sold at auction increased last month, despite an overall decrease in values, according to a report by the National Association of Motor Auctions.

The report found that the average price of used cars sold at auction in May dropped from £4,820 to £4,772, but fleet vehicles (aged 2.6 to 4.5 years old) increased by 0.3% from £8050 to £8075.

The total volume of sales strengthened by 13%, from 90,645 units to 102,860, despite two public holidays during the month.

NAMA chairman Justin Lane said: “Overall sales volumes across the month were stronger than expected despite the double bank holidays. The fact that overall conversion rates fell during May is not that surprising, although the current level of 74% on average remains higher than it did this time last year. 

“Over the next 6 to 8 weeks, we anticipate the focus will be in both the new and used sectors on family orientated vehicles. Small cars will also remain popular, and we can expect to see a noticeable drop in demand for convertibles as the trade perceives the market will have ended.

“The finance deals on offer in the new car market will continue to have an effect on the late plate used car market. We have already seen evidence of this in recent months where deals have tempted used buyers into a new car. However, this has resulted in a negative impact on the late plate used values which have in some cases stalled.

“The poor quality of cars at auction also looks set to continue. Trade buyers will be looking to buy the poor condition cars at an advantageous price so they have the money to then properly and safely prepare these examples for sale which means vendors will also be under pressure to keep the stock moving."