Used car values rise 5% in May – Nama

The average value of used cars sold at auction in May rose 5.2% to £5,420, according to the latest figures from the National Association of Motor Auctions (Nama).

Overall volumes fell 5% compared to April. Values of late plate vehicles fell 1% to £14,725 while fleet vehicles saw their values fall 3% to £8,725.

Paul Hill, Nam chairman said: “New car sales continue at unprecedented levels for the time being pushed further and faster by the manufacturers eager to keep new car stock levels across Europe at a manageable level.

Hill said the sub-£5,000 market remained strong and there was good demand for smaller cars with low running costs.

“Equally there is specific strength in the specialist market over and above £15,000 where buyers are looking for second cars or something a little different.

Weakness lies in the late plate low mileage sector which is still being affected by the fantastic offers on new cars that draw buyers away from used examples.”

Hill said the World Cup could hit retail activity later this month.

“Previous major sporting events of this type have tended to have an adverse impact on used car sales,” he said.