Used car sales hit
Fleet managers have been warned of a possible used car sales hit – signs of a downwards price move on used cars, caused by the buoyancy of current new car sales is reported by FleetWorld
The SMMT’s latest figures reveal that UK car sales rose by 11.5% in January 2013, with private sales up by 15.9% while fleet registrations were up 6.0% to 75,211 units and registrations within the sub-25 business sector rose 40.4% to 7,357 units.
Fleet Managers need to take care
The article goes on to say
In response, John Leech, UK head of automotive at KPMG, warns that the used sector may be impacted by the buoyant new car market in the UK.
He explains: ‘The picture is very different across the English Channel. Germany saw new car sales drop 9%, France saw a 15% drop and Italy an 18% drop in January 2013. Car companies are therefore targeting the comparatively buoyant car market in the UK, with larger than normal discounts to keep factories busy.
‘It also reflects a return to the new car market by customers who had switched to used cars during the recession. This may soon impact the UK’s used car market which has been booming and enjoying record high prices. Dealers and fleet managers need to take care that there may be a downwards price realignment in the used car market in 2013. I believe prices could potentially fall by as much as 5% over the next 12 months.’
Will this affect any buying decisions that you plan to make for your current company vehicle fleet?