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The National Association of Motor Auctions (NAMA) has predicted a strong February for the motor auction sector in a continuation of the 2018 trend of increased values for petrol vehicles, suggesting demand will continue to outstrip supply.
It also found that the demand for new plug-in hybrid is slowing down, while 23% of members expect to see an increase in battery electric vehicles (BEV).
It is therefore expected that, in 2019, more plug-in hybrids and BEVs will be going through auctions, increasing supply and starting to normalise their price behaviour.
Average age and mileage look set to remain steady over the coming month, said NAMA. However, around 30% of respondents have indicated that both could increase.
James Tomlinson, chairman of NAMA, said: “February looks set to be a strong month for motor auctions, with the majority of sites expecting both volumes and conversion rates to increase.
“NAMA’s new survey aims to give a monthly insight into the market with data sourced from our members. The first survey which launched this month saw strong engagement with 70% of NAMA members contributing.”
NAMA recently reported that overall used car market reached record highs in 2018.
The record was achieved despite pressures in the new car market with the introduction of WLTP in September.
According to NAMA auction activity was “unprecedented” in 2018, with both first time conversion rates and average values up.
Tomlinson said: “NAMA is optimistic that demand and prices in the used car market will remain stable and 2019 will mark another successful year for the auction sector.”