Motor auctions start 2009 on a high says SMA

Car sales at auction are beating the odds and remaining strong in early 2009 despite wider economic gloom, according to the RMI’s Society of Motor Auctions (SMA).

Car dealers looking to replenish their used car stock to meet consumer demand are helping to promote sales at motor auctions across the UK.

Louise Wallis, Head of the SMA, commented: ‘The auction market seems to be receiving a boost as a result of vehicle dealers searching for replacement stock to meet increased demand for used cars by retail customers.

‘The only negative perspective to this situation is whether auctions will be able to continue to source a high enough volume of good quality stock to meet demand. Lower new car sales, increasing fleet cycles, and decreasing pre-registration will all lead to less availability of good quality used cars.

‘However, the good news is that lower supply of vehicles will push up the value of used cars, making part exchanges easier, and improve margins.’