The average value of used cars sold at auction fell by 6% between February and March, according to the National Association of Motor Auctions (NAMA).
Its monthly market report for March shows that during March the average value of used cars sold at auction was £5,013, compared with £5,359 in February.
NAMA chairman Andrew Hulme commented: “The fall in key market factors during March is very much typical for this time of year. The market has had to contend with an early Easter as well as higher than forecast new car registrations which have generated a significant increase in stock to the market.
“As NAMA suggested in last month’s report, these key factors have lead to an increase in supply, a decline in demand and a fall in values that became evident in the rundown to Easter.
“Until there is a decrease in stock and an increase in retail demand and conversion rates, values are likely to continue to fall. NAMA expects this in the April and May markets. However this is in line with normal historical patterns and is a seasonal adjustment as opposed to a real market downturn.”