AM Online

Mileage burden is big business

The availability of large numbers of one-to-three-year-old low-mileage cars is having a massive impact on ex-lease high milers. Those with 80,000 plus are a burden to some fleet and auction vendors. Those which had contracts extended and now exceed 100,000 miles are even more burdensome.

And because the once dreaded clocker finds it increasingly difficult to ply his trade thanks to manufacturers' adoption of better technology, these values are coming under increasing pressure. The main concern is that if many more low mileage vehicles are released into the open market - and this seems very likely - then pressure on values will reach bursting point. This will soon ripple through the market and add to the level of caution and concern.

One thing's for sure - the retail buyer will get the benefit from troubled fleets and the subsequent flurry of quality used cars. Dealers who keep their heads, follow the market and use their imagination will enjoy a substantial slice of that business.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment

Comments

No comments have been made yet.