The National Association of Motor Auctions reported a polarised used car market in August, reporting that there were large numbers of older cars over nine years for sale while the number of younger cars under three years fell.

NAMA committee member Tony Gannon commented: “Overall auction sales in August 2011 were 7.3% higher than August 2012, but the percentage of older vehicles sold at auction in August this year has increased significantly.Cars aged 10.6 years or more made up 14% of all auction sales this year compared to just 9.8% in August 2011 and there has also been a dramatic change to the sales mix of cars aged between 2.6 and 3.5 years – typically ex-fleet vehicles.

Gannon continued: “In August 2011 this age of vehicle made up 19.5% of all vehicles sold at auction. However in August this year vehicles of this age made up only 15% of sales.”

Figures published by NAMA show that the average value of used cars sold at auction in August compared to July fell 2% due to a larger number of low value dealer part exchanges. He attributed the stability of the used market in August to reduced supplies rather than growing demand. Gannon added that prices had risen by 3% in the first half of September and this trend looked set to continue for a few weeks.

“However we will soon enter the traditional period of uncertainty where supply will continue to increase and it will be uncertain if the market will be able to preserve the higher prices and vendors will need to monitor the market carefully,” he added.

Source: motortrader.com