Auction sales volumes down for May
The National Association of Motor Auctions (NAMA) has published its monthly market report for May 2015.
The report shows that the average sale price in May increased by £172 on the April 2015 figure from £5,228 to £5,400. However, it was marginally down from £5,420 in May 2014 to £5400 in May 2015.
Sales volumes for May 2015 were down by -10.2% in comparison to the April 2015 figures. In terms of a year-on-year comparison, vehicle auction sales were up by 3% from 103,666 in May 2014 to 106,752 in May 2015.
The percentage of vehicles sold first time during May 2015 was down to 73% in May 2015 from 77% in April 2015, but remained static on the May 2014 figure of 73%.
The price premium for vehicles sold first time decreased to £275 and the average days on site increased to 8.4 days.
Average sale price by age profile for May 2015 increased along all age profiles compared to May 2014. The older profile vehicles have seen the greatest increase in price in percentage terms at 9.7%.
Paul Hill, NAMA chairman, commented, ‘At the wholesale level, conversion rates dipped at the end of May and into June, with average prices falling. When we look at the specifics it is clear that the volume of older ‘budget vehicles’ over 10 years old, reduced but maintained a status quo in price terms. It is only the reduction in volume that has stabilised the price in this sector – this is unlikely to continue as values in other sectors have already begun to decline.
‘There are clear indications that there has been an excess of available stock, and some vendors have been holding out for price and not following the market. My advice is that anyone selling a vehicle needs to react to this market adjustment and follow the advice of their remarketing partners.
‘Holding out for the money is a strategy that invariably costs money, with the vehicles eventually being sold for a value less than was originally bid.
‘It is good to see an increase in buyers in the auction halls again and there is also good quality overage dealer stock attracting interest from buyers. Whilst stock and buyers are there, additional realignment in pricing will be necessary during June, reflecting supply and demand, but the overall market remains positive and well balanced.’