Auction companies are predicting that values for used petrol and diesel cars will remain strong as the country emerges from lockdown and consumer confidence improves.
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The National Association of Motor Auctions (NAMA) has said that first-time conversion rates are set to rise as used car demand increases with the easing of COVID-19 lockdown restrictions.
While physical auctions remain closed to traders during ‘Lockdown 3’ head of NAMA, Louise Wallis, said that sales activity is already on the rise as car dealers begin to stock their forecourts ahead of the arrival of demand pent-up over recent months.
Wallis said: “The latest NAMA survey shows strong demand from dealers for forecourt stock. This is due to an expected rise in consumer sales post-lockdown. The auction market is expected to remain strong over the next few months to fulfil this demand.
Click the thumbs up >Car auction firms believe that values for used petrol and diesel cars will remain strong or could increase, despite a decline in the used car market.
Motor auction members of the National Association of Motor Auctions (NAMA) have told the trade body that internal combustion engine vehicle values have held steady during the recent lockdown in the United Kingdom.
In a recent survey it found that 90% of respondents believe both petrol and diesel values would remain strong or further increase. Auctioneers also say first time conversion rates are performing well, with 67% expecting rates to increase over the next month, with the remaining 33% expecting them to stay the same.
The remarketing industry is increasingly refurbishing ex-fleet cars to match quantifiable NAMA-approved levels of condition.
There is a spectrum to refurbishing used cars. At one end are those who hand over the keys to something utterly pristine that, as we have often discussed in these pages, will more than likely fly through auction with no shortage of bids.Â
At the other are owners or lessors who just want shot of the thing - never mind the state of it. That was fine during summer, when demand for used cars was such that even old, ropey ones were going for serious money - not so much when the market is anything but strong.Â