The UK’s wholesale used vehicle market maintained steady performance through May, according to the National Association of Motor Auctions (NAMA), with conversion rates dipping slightly amid seasonal pressures.
Speaking after NAMA’s May market meeting, spokesperson Paul Hill said: “Conversion rates softened marginally due to bank holidays and other seasonal factors, but overall pricing has held up well.”
LCV values ease as stock tightens
In the light commercial vehicle (LCV) sector, values edged down 2% heading into June, marking the first notable shift after several stable months.
NAMA members cited a tightening of stock levels – a supply shortage forecast earlier in the year is now becoming apparent.
Battery electric LCVs (BEVs) remain the most challenging segment, with prices down 3.1% month-on-month.
Diesel and petrol vans also saw moderate declines of 2% and 2.4% respectively.
Demand for 4×4 pickups has come under pressure following recent changes to benefit-in-kind tax rules.
BEV prices dip as market remains cautious
Across the wider market, pricing trends remained broadly stable. Petrol and hybrid vehicles continue to lead on price performance, while BEV values slipped by an average of 2.1% in May.
NAMA members report increased volumes of Teslas returning to the wholesale market, though these have not significantly disrupted pricing.
“Well-presented vehicles remain in strong demand, while stock requiring cosmetic or mechanical work is proving harder to shift.
“BEVs are gradually finding their place in the used market,” Hill said.
“Range improvements and newer models are helping to drive that transition, though pricing remains volatile across some brands.”
Conversion rates down from Q1 highs
Conversion trends echoed those seen in April, down on Q1 highs but supported by steady pricing.
NAMA says strong retail interest, demand for quality stock, and competitive bidding activity are keeping the wholesale sector buoyant.
“Despite pressures in some segments, the wholesale market has shown resilience through the spring period,” Hill added.
“With a positive start to the year behind us, our members remain optimistic as we move into the summer months.”