Fleet News

Buyers shun new for nearly new

THE used car market is 'on fire' according to Honda corporate sales chief Nicholas Phillips as private buyers flock to buy ex-company cars instead of new vehicles preferring to hold-out for new car price cuts. Last week auction companies reported a buoyant start to the millennium and Phillips says fleets which extended replacement cycles last year in anticipation of price cuts were now returning to the marketplace.

'User-choosers want to extend replacement cycles because they think that list prices will fall and that will lead to lower P11D demands,' said Phillips. 'But with the second hand market on fire contract hire companies and outright purchase fleets which extended last year in the hope of lower prices are returning to the new car buying and taking advantage of strong used car demand.'

His view comes as the first Used Car Confidence Index from CAP Motor Research reveals that used car sales are almost 8% year-on-year with confidence for the future high among used car retailers.

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