Wednesday, 16 May 2012
The average values of used cars sold at auction fell 2 per cent in April to £4,550, according to the National Association of Motor Auctions (NAMA).
NAMA chairman Andrew Hulme said the April results show that the key indicators of market health were down but this was to be expected at this time of the year.
"There was a 2% overall price reduction for all cars sold in the month, sales reduced by 9%, conversion rates fell and the average number of days that cars were spending on site increased," he said.
“However it is important to remember that these changes are typical for this time of year. April saw the usual influx of ex-fleet cars while trade buying activity has slowed. This is due to dealers experiencing a normal slowdown in retail sales therefore the need to replace stocked has tapered.”
NAMA committee member Mike Pilkington said: “The first 10 days of May have witnessed a steady decline in trading conditions as stocks remained high in comparison to trade demand.
“Also a large proportion of the unsold vehicles are cars that require more than the normal refurbishment to make them fit for sale.
“NAMA expects prices to continue to slow for the next few months. However this is in line with what is expected for this time of year.”