The used car market would benefit from more transparency of pre-registrations which risk putting car values on a downward spiral.
That’s a view from Derren Martin, senior editor of CAP Black Book, who will help dealers focus on retailing their pre-registrations in a presentation at the AM Used Car Market Conference on October 20.
“Following the registration lows of 2008-10, used car values remained strong from 2012 to 2014,” Martin said. “The surge in new car registrations is increasing used car volume and there are growing concerns about the impact on the market.
“However, the real worry is the number of pre-registrations and finding customers for these cars quickly before residual values begin to bear the brunt, which in turn could affect the value of returning vehicles purchased on PCP plans some two to three years ago.”
Martin will share his expectations for the final quarter and likely trends of 2016.
“Greater transparency in terms of the number of pre-registration vehicles from manufacturers is vital if the market is to be managed as effectively as possible.
“Our estimate is that around 10-15% of new registrations are pre-reg vehicles, but it is very difficult to judge.
“Dealers are just as keen as we are to have that information so they can understand the market better and prepare for any impact, but manufacturers are reluctant to share the details.
Martin will talk about how a recovery in the European economy will help to stablise the market ahead.
“It is more essential than ever for dealers to keep their fingers on the pulse when it comes to market values as these will start to change more regularly as a result of these combined factors.”
The last remaining tickets for the AM Used Car Market Conference are available to dealers and manufacturers. To book, contact Nicola Baxter on 01733 468289, email email@example.com or click here