Dealers are confident they can handle the volumes of PCP cars coming back into the market, according to dealer research carried out by Manheim.
Most dealers welcomed the trade-ins generated by PCPs with 63% of dealers said that the returns were “very Important” to them.
Only 3.5% of dealers said that PCP returns are not an important source of used stock.
The research confirmed that dealers are proactively targeting customers to enter a new agreement before their contract expires.
A third of dealers target over 75% of their PCP customers for an early exchange
A total of 95% of customers choose to take on a new PCP when they change their car.
Overall, dealers say PCPs are behind the boom in new car sales.
“67% of respondents agreed with the statement that PCP has been the most important factor in the growth of new car registrations,” it said
The majority customers, 80%, expected to have positive equity in their car when the time came to replace it,” said Craig Mailey, strategic planning director for the Cox Automotive International operations.
“It feels to us that it is under control. Dealers can handle the volumes of cars coming back,” said Mailey.
