Vendors’ attempts to hold back stock for better prices in January led to disappointment amid high volumes and lower than expected values, the National Association of Motor Auctions has reported.

First time conversation rates saw an increase of 2% on December, but a fall of 1.3% year-on-year, to 80.8%, as average selling values rose 3% compared to January 2016, from £4,980 to £5,296 – down 3.3% on December.

Average mileage was 2.3% higher than in December, at 65,320, but almost 4,000 miles (-5.8%) lower than in January 2016, meanwhile.

The NAMA report, which is compiled by Glass’s, said: “Wholesales activity in January appeared to be strong with an overall conversion rate of almost 81% although, due to the significant increase in volumes entering auction sites, hammer prices came under pressure.”

There was no premium achieved by selling on the first time of asking in January, something that the report said was "an indication that vendors were aware of the significant volumes of offer in the market".

Louise Wallis, head of NAMA, said: “In January, wholesale activity appeared to be strong with a very high overall first time conversation rate.

“Some vendors seem to have held stock back in December to benefit from better prices in January. This would explain the increase in volume, although it did not help prices in the short term.

“Positively, towards the end of the month prices began to strengthen and performances improved, we now expect the activity to remain buoyant throughout February.”