Strong start to new year in wholesale car market, says NAMA

The UK’s wholesale car market has performed strongly in January with promising signs in retail demand and search activity too, according to the National Association of Motor Auctions (NAMA).

The trade association said search activity has increased by 4% year-on-year in January and there has also been some unexpected search activity around diesel, which has seen a 10% increase YoY.

Overall, members are reporting that the car market is in a strong and healthy position. 

Average price movement “is negligible” with prices generally level however, battery electric vehicles (BEV) have shown slight weakness, down by -0.7% with plug-in hybrids (PHEV) fairing slightly better with values down by -0.5%.

Older, higher mileage vehicles have improved on their year-end position.

NAMA said the current positive momentum is expected to continue over the coming months through vehicle condition remains a key factor in ensuring strong performance.

LCV performance is mixed

However, light commercial vehicles (LCV) have seen more of a mixed performance, with the older market experiencing more negative trends than positive ones, while the sub-five-year-old market has shown better stability.

NAMA members reported strong performances in areas where product is in short supply whilst parts of the market have been weaker overall, particularly with damaged stock.

A key factor that may influence a sector of the market is the upcoming change in Benefit-in-Kind tax treatment for double cab pick-up trucks, set to take effect in April 2025, as announced in the 2024 Autumn Budget. 

NAMA spokesperson Paul Hill said: "From a wholesale standpoint, the market is demonstrating strong and promising signs as it enters the new year

“Despite some challenges, the market has started the year on a positive note, with a strong overall performance in January 2025. We anticipate this positive momentum to continue through the first quarter.”