August's average used car values remain ahead

The average value of used cars sold at auction across the board decreased from £5,595 to £5,512 last month, although this remains 12% above the average price achieved in August 2013, according to the National Association of Motor Auctions (NAMA).

Overall, volumes were broadly flat versus July at 101,944, but up 8% versus this time last year. However, the profile of vehicles has changed, with fewer fleet profile cars against a growth in older PX profiles in particular, raising the average age of vehicles sold to 83.1 months from 81.5.

First time conversion rates for sold stock continued to improve, albeit at a slower rate, increasing from 79% to 80% and the premium of first time sold vehicles over those sold at second/subsequent entry (on a consistent basket basis) rose to a high of £375, although at 8%, the difference remains around the average expected.

Price changes in August compared to July by age profile

Falling supply of late and low and fleet profile vehicles buoyed price and conversion rates for cars in these age ranges; this contrasts with PX and older vehicles where first time sale rates suffered with an increase in supply versus July.

Values remain higher than a year ago across all age profiles despite broadly similar age/mileages, with an average %OCN at 1.4 percentage points above that achieved in August 2013.

Paul Hill, NAMA chairman said: “August is always an interesting month in the auction market, and this year it represented challenges similar to those experienced in previous years. Retail activity was varied with the weather seeming to play a key part in when buyers actually came to the dealerships. Weekends were ominously quiet at times yet mid-week was often busy for many.

“With holidays out of the way, the first week of September was predictably subdued from a used car perspective. With focus on new car sales, vehicle hand overs and family buyers distracted by children returning to school, it was not until the second week that used car retail activity started to pick up. This actually works well with the dealers as it gives time for them to concentrate on new car fulfilment.

“In summary, we expect September will be an active month for all. The choice of trade stock will improve offering trade buyers some interesting alternatives, which in turn will provide retail buyers with an improved selection of cars to choose from.”