Fleet News

Restrictive policy is changing used car market

MAJOR car makers are sticking to their policy of restricting supply of fast-churn vehicles and prompting a significant change in the used car market according to experts at CAP and Glass's Guide.

The combined efforts of Ford, Vauxhall and Rover to cut back on supply into the daily rental market and extend replacement cycles have reduced the volumes of four to six-month-old low mileage cars, but hopes of an improvement in residual values and new car sales could prove premature.

Glass's Guide cars editor Arnie Fenn said the big three's policy had merely opened the daily rental door to smaller car-makers and created more choice in a nearly new market consisting of older, higher mileage cars. CAP chief economist Mark Cowling agreed that manufacturers were sticking to their guns and also predicted a stabilisation, but not necessarily an increase in residual values. 'This trend makes for a more orderly market with a clearer distinction between a new vehicle and a nearly new vehicle,' he said.

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