The National Association of Motor Auctions (NAMA) has reported that Q1 2025 has been extremely positive for the car retail market, with demand outweighing supply throughout March.
Data and metrics from March 2025 indicated a positive outlook for the car market. Retail search activity increased by 3% compared to the same period in 2024, highlighting growing consumer interest.
Overall, demand continued to exceed supply, with NAMA members noting a general shortage of stock. Conversion rates remain strong, with electric vehicles (EVs) older than two years offering good value. However, EVs under 18 months are encountering more challenges.
The wholesale market also experienced a successful first quarter, with NAMA members anticipating potential impacts from the Easter holiday in April.
NAMA members observed that while the overall light commercial vehicle (LCV) market remained stable, chassis cab vans experienced significant volatility. Some regions reported strong performance, contributing to a more optimistic outlook compared to the previous year.
In the electric van sector, more products entered the market, expanding availability. Meanwhile, the used 4×4 market showed signs of slowing, which is expected due to upcoming changes in Benefit-in-Kind (BIK) tax treatment for double cab pick-up trucks scheduled for next month.
Paul Hill, spokesperson for NAMA, said: “Overall, Q1 2025 has been extremely positive, for the month of March so far demand has been outweighing supply with general shortages of stock.”
Hill added: “Conversion rates remain strong, and it’s noteworthy that EVs over two years old are proving to be good value, which will support the overall vehicle fleet during the transition to electric.
“The general LCV market remains stable but as expected, chassis cab vans are seeing volatility and the used 4×4 market is seeing a slowdown, with Benefit-in-Kind tax changes next month.
“It is really great to hear that everything is still in a positive place, and it will be interesting to see the market in the second half of April and going into May, with Easter around the corner.”
