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Summer slowdown prompts 19% fall in LCV auctions sales for June, reports NAMA

The report also shows that the average values of used LCV’s at auction fell by just £33 across the board from £4,322 to £4,289 between May and June.

NAMA suggests that the increase in the average number of days in stock was almost certainly attributable to the spike in volumes seen in May and the traditional summer slowdown in market activity over the second half of the month.

Over the past 12 months, fluctuations in mileages have proven to be increasingly difficult to anticipate, and the company thinks it is unlikely that average mileages will fall back significantly for a considerable amount of time.

The report also suggests that for second month, there was a decrease in price for vans of all ages, which is partly explained by a further increase in average age, with dealers saying that they are experiencing more problems when retailing high mileage used stock. Accordingly, it is to be expected that as long as big volumes of these higher mileage vans are being offered, prices will continue to come under downward pressure.

Alex Wright, chairman of NAMA's LCV Group, commented: ‘June’s report again highlighted underlying strength within the marketplace with encouraging data on conversion rates, the number of entries needed to achieve a sale and the average age of an LCV lot combining to deliver a sound performance across the UK’s auction scene.

‘Now that we are halfway through 2013, the positives seen across the marketplace greatly outweigh any negatives. With a flexible approach being adopted by both vendors and trade buyers, supply and demand has broadly been kept in balance.

‘Going forward, the outlook for July is looking set to be something of a patchy month as a good number of auction regulars take a well-deserved holiday. However, amongst this there will be those days when the market is buoyant with each lot attracting strong bids. It will not be until the second half of August that we can expect to see things returning to their normal rhythm and not until early September when we can see the market lifting.’

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