NAMA grading offers opportunity to maximise profit performance

The National Association of Motor Auctions (NAMA) is urging sellers to maximise the residual value of their vehicles by taking full advantage of its used grading system to ensure maximum asset performance.

“NAMA’s Used Vehicle Grading Scheme is allowing sellers the power to unlock additional value and achieve significantly higher outcomes at auction, through small, cost-effective improvements to vehicle condition” said Paul Hill, NAMA spokesperson.

Hill said that by simply investing in cosmetic refurbishment to maneuver a vehicle’s grade from a 4 to a 2, sellers can achieve a big, measurable return on investment.

Using an example of a vehicle sold at auction for £10,000, he points to data that shows that a Grade 4 automotive typically achieves 86% of guide price, while a Grade 2 vehicle reaches 97% – a difference of £1,100 in sale price performance.

In this instance, upgrading the vehicle grade might be achieved by repairing two panels, refurbishing a bumper corner, and carrying out Paintless Dent Removal – at a mean cost of just £550.

Using this instance, a £1,100 increase in vehicle value for a £550 investment will mean a 100% return – effectively boosting the vehicle’s market value while providing a powerful, measurable final result for the vendor.

Hill said that beyond the immediate financial uplift, sellers profit from faster first-time conversion rates, reduced days in stock, and greater buyer engagement – all of which enhance a seller’s brand repute and cut stocking costs.

NAMA members have the expertise and tools to guide sellers through the method, helping operators maximise asset performance opportunity and maximise the potential of each vehicle.

Hill said: “The NAMA Used Vehicle Grading Scheme offers sellers a simple technique to improve performance at auction through smart, cost-effective enhancements. By making targeted improvements, operators can increase a vehicle’s value and improve buyer engagement, ultimately supporting quicker sales and a stronger repute available in the market.

“Our members have the tools and expertise to support their customers in realising the total potential of each vehicle they remarket.”