Glass’s Guide has warned of the “huge rise” in dealer self-registrations that are putting pressure on older vehicle values. The used car guide said that the volumes of sub-one year old cars has risen by 43% due to dealers registering cars to hit carmaker sales targets.
Glass’s joins dealer profitability specialist ASE and rival used car guide CAP in warning of the rise of self-registrations in the market. Steve Jackson, chief car editor, said: “The volume of sub-one-year-old cars is up by 43%, indicating a huge rise in dealer and manufacturer pre-registrations.
“Pre-regs are not a bad thing in themselves but they do create a growing distortion in the market. The flood of pre-regs creates substantial downward pressure on older vehicle values, which are falling.
“We have seen an ongoing explosion in PCPs but manufacturers are having to make them ever more attractive in order to continue to sustain growth in the market. “At some point, we will reach a situation where no matter how much manufacturers provide support in terms finance, customers will stop signing new leases. “How will manufacturers then cope with huge volumes of cars leaving their factories?”
