Shortage of 2-4 year old cars driven by pre-registrations & increased daily rental sales
In the latest monthly bulletin from MyCarCheck.com/Trade, which is the trade valuations arm of CDL Vehicle Information Services, Gavin Amos, head of valuation services, said: ‘Although new registrations for March were healthier than many predicted, there are suspicions that a lot of the cars were not actually sold. The pre-registering game is by no means a new one – it has played a major part in supplying dealer networks with nearly new stock for years.
‘Short-term daily hire is also on the increase again after several years of manufacturers trying to stop it. Like pre-registering, it plays an important role in supplying the trade with a steady feed of cars. So long as they are not overused such practices can be useful in keeping the industry moving.’
He added: ‘Manufacturers’ fleet managers play an often overlooked but extremely important role in the used car market. The supply chain is delicate and easily disrupted by the mass registering of new vehicles, with the knock-on effect of damaging residual values. The current shortage for two, three and four-year-old vehicles is not going to ease overnight. Indeed, without the correct management of new cars, the problem will continue for much longer than it needs to.’