The volume of sales at car auctions rose by 12.6 per cent last month in comparison to August 2015, the National Association of Motor Auctions (NAMA) has said.
The rise is in line with the annual trend of car buyers holding out until the new registration plates are released in September. However, while volume increased month-on-month, the NAMA's report revealed that the average price of the cars sold fell by 3.5 per cent from £5,588 in August to £5,391 last month.
Car auctions are a popular place for independent and part-time car dealers to source new stock. Once they purchase a new vehicle at auction, it is important that they are updated in the Motor Insurance Database – this will ensure they are covered as part of the dealer's road risks insurance or motor trade insurance policy.
Other findings to emerge from the NAMA's research were that the percentage of vehicles sold first time increased in September, rising from 84.1 per cent in August 2015 to 85.4 per cent. Meanwhile, the price premium placed on the cars sold at auction decreased by £50, dropping from £350 to £300, with the average number of days a car would typically be on site also falling from 8.2 days to 7.3 days.
Paul Hill, NAMA chairman, commented: "The September plate change has driven volume up through the month with values compared to August 2015 starting to decline. Available volume in auction was up significantly at the start of October and conversion rates have lowered.
"It is anticipated that volumes will continue to grow during the month as fleet returns and part exchange volume continue to fill the lanes. Values will come under mounting pressure during October and will see an additional fall."