CAP reports strong demand for three-year-old cars after “slower than usual” start
CAP’s senior editor, Derren Martin, says Black Book Live only began tracking prices upward around the middle of the month, with two factors appearing to having driven the eventual increase in trade appetite for cars. Number one was a growing concern among dealers that they might be caught short of stock, as it became apparent that there were fewer cars available than typical for the start of the year. This was then coupled with a determination to snap up the best cars as soon as they appeared.
There is now particularly strong demand for the best examples of three-year-old stock, which more scarce than it has been.
However, CAP has warned that market price stability may suffer as the struggling economies of Europe cause manufacturers to focus on the UK as their best bet to increase new car sales.
He said: ‘Manufacturers are having a very tough time in Europe and may well look to the UK this year as their best opportunity to keep the wolf from the door. The current relative strength of Sterling against the Euro also makes Britain a stronger prospect for maintaining profits on new cars.
‘If supply of new cars is increased significantly, through large-scale rental deals or pre-registration, it will probably stem the increase in trade values at some point.
‘But even if that happens, many dealers will welcome the availability of more prime retail stock and consumers will also benefit from increasingly competitive deals as more cars are managed into the market.’