The National Association for Motor Auctions, or NAMA, held its first marketing meeting of 2025 to mostly positive signs. This has led to hope that the momentum can continue through the first few months of the year.
The Positives
Car prices have generally held steady, whilst there is a 4% increase in search activity compared to January 2024, indicating particular strength on the retail side. Older cars with greater mileage seem particularly well placed. Diesel searches have also seen a 10% rise in the same time period.
If you are searching for used vans for sale near me, such as those at cotswoldvancentre.co.uk/buy/used-vans-for-sale if you are in the Cotswolds, the strongest part of the market is currently the newer section – those less than five-years-old. Low supply has increased demand and therefore boosted the market.
Double-cab pickups, which may currently be classed as cars or vans by HMRC depending on whether they carry more or less than a tonne, will be reclassified later this year with a two-part test based on the construction of the vehicle. EIM23115 establishes when a car may not be considered a car for tax and benefit purposes because it is used for conveying goods. This prospective change may be impacting demand, as it means many vehicles that are considered vans under the current rules will instead become cars.
The Negatives
In cars, the weakest section appears to be battery electric vehicles, with a 0.7% decrease, with a similar 0.5% drop for plug-in hybrid cars. Older vans, those from more than five years ago, are still experiencing some negative trends. In general, the condition of vehicles continues to have a significant impact on the market, so poorer quality may resist positive market trends.
There may be some areas that are experiencing weakness, but in general the early signs suggest that 2025 will be a positive year for the used car and van markets. It is particularly important to take note of the change to the rules from HMRC regarding the classification of cars and vans.
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