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More and more niche models coming into the new car market could start to hit residual values, according to vehicle data provider Glass's.
Glass's head of valuations, Rupert Pontin warned niche segments are in danger of becoming the new mainstream, adding if this happened values would start to tumble.
Pontin said the craze of introducing niche models started when Nissan introduced the Qashqai to replace the Primera in 2006. Pontin called this move a "huge success", adding, "since then, we have seen a plethora of new niches - all kinds of soft-roaders, coupe-saloons, 4x4 coupes and more".
He suggested there could be a time where there are too many niche models on the market, citing German car makers in particular for causing a problem.
"You only have to look at the ranges of the German prestige manufacturers, which are running to 20 or so separate models with multiple variants within each range and more planned, to see the potential that exists for confusion," Pontin continued.
"Ironically, the C and D sector saloons that were once considered dull are now, in some cases, around in such small numbers that demand exceeds supply by some margin and they move quickly off forecourts," he said.
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