Thursday, 22 November 2012
The proliferation of self-registrations in the new car market is impacting residual values in the fleet sector.
With Cap research showing that up to 30% of cars entering the new market are pre-registered, Motiva, the Staffordshire based fleet management company, has warned that the influx is impacting re-sale vales.
“Self-registration has introduced more volatility and a lot of deals are being done on an ad hoc basis by dealerships and brokers,” said Peter Davenport, chief executive.
“There’s very little stability in pricing, which makes things difficult from the fleet manager’s point of view.
“If the headline cost of a vehicle can go up or down by 30 per cent from one day to the next, longer-term budgeting and investment decisions become harder.”
Davenport said high volumes of self-registrations could present challenges to the fleet industry such as over-supply and devaluation of vehicles coming on to the retail market in three years’ time as self-registrations come out of contract.
Motor Trade Mag: 22nd Nov 2012 13:49:00
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