Fleet News

Over-supply blamed for tumbling used car values

USED car values will continue to suffer over the next year because manufacturers are stubbornly producing too many cars for the UK market, raising fears that leasing rates will have to increase for fleets. Estimates for the new car market this year range from 2.2 million to as high as 2.3 million but 'true' demand is far below that.

Rael Winetroube, sales director for debis Car Fleet Management, warned: 'Used car values will be further depressed and this will affect the wholelife costs of leasing and rental firms.' This would add to the pain of an industry that had gone through 'something close to panic' in the past year, he added.

Despite the Government's Supply of New Cars Order 2000, which intended to reduce new car prices by 10%, Winetroube said: 'Reduced discounts and lower residual values have offset lower prices and leasing companies must communicate this full picture to their customers.'

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