The latest National Association of Motor Auctions (NAMA) report shows that during July, the average value of used cars sold at auction across the board increased.
The total volume of sales rose 6% from 83,637 units to 88,697 units, driven by resurgence in fleet segment volumes which rose 12% to 20,353 units, while the average value of used cars sold at auction rose from £4,828 to £4,862.
Sales conversion rates increased slightly to 74%, returning to May’s levels, but remain down on July 2012’s performance.
According to the organisation, the fleet age segment appears to have a depressed conversion rate versus the others driven by a high proportion of poorer condition (grades 3 and 4, where graded) vehicles offered for sale, which tend to be more difficult to sell first time than their unmarked equivalents.
Justin Lane, NAMA chairman said: "During the first two weeks of July the retail market was quieter than many had expected with very unsettled activity. Transactional activity increased across all age segments, although this increase was most pronounced for the Fleet age segment. Whilst the overall average price increased slightly, this was entirely due to mix-effects. Average prices by age bracket were down versus June and cars in good condition continued to be extremely desirable and return strong money.
"The last two weeks of July and the first week in August have seen a marked difference in market conditions with a significant increase in enquiries and the associated upward trend in sales. Naturally this has an effect on trade demand, and there has been evidence of a little more activity. However, this is unlikely to result in an imbalance in supply and demand for the time being.
“We are hopeful that the slight rise in conversion rates is likely to improve further during August due to the reduction in available stock as a result of the impending plate change."