Fleet News

'Fleets need educating on new plate system'

A MAJOR education drive on the new number plate system is desperately needed to avoid residual value uncertainty spreading throughout the industry. The new system to be introduced in September will be the first major change since 1963 and demand for a new plate car could lead to a flood of used vehicles pouring into the car market.

Tom Madden, customer affairs director of British Car Auctions, warned that fleet managers had to understand the potential effect on the market and manage their replacement cycles accordingly. BCA has conducted research to gauge awareness of the potential ramifications.

Madden said: 'For new car customers, having the latest plate has become something of a status symbol. The same has applied to many retail used car buyers who have for many years valued a car largely on a combination of its registration plate and mileage.' He added that the new system would probably make the age identifier less obvious and, as a result, could bring about a change to buying patterns.

'There is likely to be a boost in new car demand in September as many motorists strive to first on the block,' Madden said. 'Demand for used cars with the first of the new-style plates is also expected to be good and this 'halo' effect may last for some time.'

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