The headline figure has come from NAMA’s monthly market report for July, however while the manufacturer/rental market recorded an increase in values of four per cent, the fleet and dealer part exchange sectors – which account for 90 per cent of sales – recorded more modest increases of one per cent and three per cent respectively.
All the key performance indicators signalled positive market conditions during July, although retail demand remained at its normal seasonal low point and dealers have been unwilling to commit themselves to large amounts of stock, said the report.
Dealers have been buying from auctions on a ‘little and often’ basis, and many auctions have enjoyed higher attendances as more buyers compete for the cars that are available.
Andrew Hulme, NAMA chairman, said: ‘The combination of auction shortages and sales conversion rates increasing from 72 per cent to 77 per cent in July has helped to produce positive prices. This means a smaller number of cars being carried over to subsequent auctions as vendors readily accept what they believe to be acceptable offers in relation to their reserve prices. Over the last couple of months with fewer cars concentrating trade demand, prices have been pushed up. This reduces the supply again and the cycle is repeated.
‘We suggest that both buyers’ and sellers have been moderately surprised by the overall strength of the market.’
‘NAMA believes that this very encouraging picture of the market is set to continue as it is very unlikely that there will be any significant injection of supply until the middle of September.
‘It is likely that trade demand will stay constant until mid to late August and this then should ensure stable prices over the period. Despite the general shortage of stock, volumes will increase in September post plate change and vendors will need to be sensitive to movements in the marketplace and take every opportunity to sell whilst shortages prevail.’