Auction Volumes To Stabilise In June
- June 17, 2019
- Posted by: John Swift
- Category: Automotive Industry
Auction houses expect to see volumes stabilise next month as the impact of reduced new car registrations in April and May and the fewer part-ex vehicles traded feed through to the supply of used stock.
Many experts forecast that diesel values will continue their slide but those for petrol cars and vans will remain broadly the same as now, as will those for hybrid and electric vehicles.
In contrast, consumer demand for cleaner and lower emission vehicles could well push up values of Euro 6 compliant cars.
The data comes from the National Association of Motor Auctions, whose Head, Louise Wallis, said:
“NAMA members are expecting used car volumes to stabilise in June, due to a lower number of new car registrations in April and May which led to a reduced number of cars coming through to remarketing centres from dealers and fleets.”
She said almost 30% of members are expecting volumes to drop or stay the same and almost half predict diesel values to fall. More than half say petrol values are set to remain steady but only 12% reckon they will rise. Auction houses say AFV prices are probably set to stay the same as now. A large majority – 70% – say average age and mileage should remain steady through June.
Euro 6 compliant vehicles to get ULEZ boost
However, increased awareness of cities following London’s lead in enforcing Ultra Low Emission Zones – Birmingham and Leeds start theirs in January – will focus demand on Euro 6 vehicles and 40% say values will go up accordingly with half saying they will at least remain at current levels.
“The auction market appears to be stable even though car values have been softening in recent weeks. Vehicles which are presented well and competitively priced are still in demand to fill dealer forecourts. Any decline in vehicle values should be seen in the context of very strong prices over the past year, which could not continue at those levels without some correction.”
BCA’s latest Pulse report shows that the headline used car value went up last month, to an average of £9,262. Fleet and lease values averaged £11,370, up £407 year on year, dealer part-ex values rose slightly from May 2018 (by £159) but the cars coming through were younger with mileage and age dropping. The rising values of nearly-new vehicles continued during May, with values averaging £21,579, up by £1,549 (7.6%) from a year ago.