Online auction numbers surging

The National Association of Motor Auctions (NAMA) has reported buoyant results from members, with numbers participating in bidding online increasing daily.

Louise Wallis, head of NAMA, said: “Hundreds of thousands of vehicles are transacted online each year by our members. Through the period of lockdown, members have adapted their businesses to provide customers with the chance to continue to buy and sell vehicles while complying with current government guidance.

“Although restrictions remain in place keeping auction houses closed until 15 June, online auctions are permitted, and our industry is very much alive. Seeing members adopt industry-approved processes ensuring that safety and social distancing measures are adhered to is extremely positive.

“The NAMA vehicle grading scheme has been crucial for buyers during the current crisis, due to the consistency, trust and confidence it provides to support buying online at any member auction. Similarly, sellers use the scheme to accurately value stock, ensuring that vehicles are not overpriced, and more are sold first time. The data arising from these sales is used by the industry’s data and software solutions providers to assist in the valuation and forecasting models used by the whole motor industry.”

Derren Martin, head of valuations UK for cap hpi said: “We analysed over 1.5 million sold data records from the auction industry in 2019, allowing us to reflect on market prices by producing valuations used widely across the industry. From these values, forecast values are produced, allowing the finance and leasing industry to look at what vehicles will be worth in the future, so that they can set finance rates to businesses and consumers, allowing vehicles to be sold via this financial medium.

“In our view, used vehicles sales do not work without vehicle auctions – they are the stock market of the motor industry and custodians, as currently seen, of a resilient marketplace. Although they are handling lower volumes of vehicles at present, stock keeps turning, and they provide invaluable data and are most importantly a proven secure method of re-marketing vehicles. They offer every channel at every level of the re-marketing service, including collection, delivery, vehicle storage and refurbishment and body shops. They have adapted very quickly over the last few weeks to an ever-changing landscape.”