Super car

Remarketing sector ‘very positive’ as used vehicle shortages maintain high values

Remarketing firms expected used car and van prices to increase by upwards of 1% in March amid “very positive” trading conditions buoyed by strong demand for limited stock.

Good trading conditions in both retail and wholesale markets remain prevalent at the auctions, with demand strong for older, more affordable cars proving strong, according to operators who attended a National Association of Motor Auctions (NAMA) meeting this week.

NAMA advisor and former Manheim director Paul Hill said it was “positive” to see the sector performing well, adding: “In March, we are predicting price guides for cars to rise slightly, circa 1% likely.

“Cars with more challenges around their condition, particularly grade four or lower are still proving to be the least popular. Presenting cars in a good condition remains as important as ever with buyers continuing to hunt for the best quality of stock for retail.”

Cap HPI director of valuations Derren Martin told AM that demand for petrol and diesel cars was strong this month, as the cost-of-living crisis continued to draw buyers to older, more affordable cars.

However, he also indicated that retailers could soon start stocking electric vehicles (EV) as a pricing realignment triggered by growing volumes and rising energy costs started to ease.

NAMA reported that its members had seen a ‘plateaued’ effect in demand for EVs, with values continuing to fall and some cars easing by as much as 10% since the start of the year.

Elsewhere, a “noticeable shortage of stock” for cars and light commercial vehicles (LCV) continued to maintain buoyant values.

Cars in the £15,000 to £25,000 price range continue to see good values, it said, with £5,000 to £15,000 vehicles “performing very well and experiencing strong demand for good quality cars in good condition”.

The market has so far failed to meet NAMA members expectations of an influx of vans entering the market.

Earlier this week Aston Barclay reported that the used LCV market would maintain a state of high demand and low supply until 2024 as restricted production volumes mean many new vans ordered now won’t be delivered for at least 12 months.

But NAMA said there were signs that the market is now beginning to calm.

It added: “The strongest performing sector for LCVs is the small and city vans, reflecting high levels of demand.”

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