5:31 pm, December 31, 2008
DECLINES of 35 per cent in nearly new car volume will mean falls in values of younger cars will be reduced.
EurotaxGlass’s says that the situation is in contrast to 2007, where supply far exceeded demand. The reduction in 2008 is a result of ‘far fewer’ dealer self-registrations.
‘In late 2007, the supply of ‘57’-plated cars significantly outweighed market demand,’ said Adrian Rushmore, managing editor at EurotaxGlass’s.
‘This year, by contrast, the number of ‘58’-plated vehicles appears to be more manageable. Many dealers still have on their books a significant number of cars at or just over 3 months old, but in general, they are not overstocked – at least, not to the extent that they were 12 months ago.’
He said fewer ex-demonstrators meant the steep falls of recent months would be stemmed. However, they will still fall – ‘just at a more gradual rate.’
Rental companies extending vehicle leases means there are fewer ex-rental vehicles in the system, too. This will continue in 2009 – particularly as many manufacturers are restricting supply to hire car firms.
Rushmore did warn of one possible problem facing dealers in 2009, though. ‘Longer periods of retention will mean ex-rental cars could have around 20,000 miles on the clock, rather than the more typical 14,000.
‘Whether this suits potential car buyers remains to be seen.’
