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New plate change could paint false picture of car market, Glass's warns
Date: 01 September 2015 | Author: Daniel Puddicombe
Valuations expert Glass's have stated that this month's plate change is likely to paint a falsely buyant picture of the market.
According to the firm's head of valuations, Rupert Pontin, there are 43% more cars under a year old than this time last year, indicating there has been a large rise in pre-registrations.
"Customers need to see a sensible pricing difference between new cars, nearly new pre-regs and older vehicles," Pontin warned.
"The flood of pre-regs creates substantial downward pressure on older vehicle values, which are falling."
September is set to be the 42nd consecutive month of growth in new car registrations, with PCPs and other finance deals fuelling sales of new and nearly-new vehicles.
"At some point, we will reach a situation where no matter how much manufacturers provide support in terms of finance, customers will stop signing new leases. How will manufacturers then cope with huge volumes of cars leaving their factories?" Pontin asked.
"Also, it could be that in the final quarter of this year, we start to see the new Government's austerity policies take effect" with people having less disposable income, he added.
