Fleet News

Used values buck concerns over economy

USED car values are bucking widespread fears of economic uncertainty, which are being fuelled by the conflict in Iraq, industry expert CAP claims.

Its comments come amid industry-wide arguments over the future trend of residual values, with some experts claiming they are already at an all-time low.

CAP made its claims as trade market values increased into April – the third monthly rise of the year. The figures are reflected in the April edition of CAP Black Book.

The increase is largely due to a combination of short supply in some market sectors and strong demand across many parts of the market. Many dealers across the country are struggling to find 'attractive' cars for the forecourt and during March were prepared to pay higher than expected for good stock.

Black Book senior editor Tony Styles said: 'There are a number of factors driving the market generally upward. These include much stricter stocking policies, so that fewer cars are held back to replace those that are sold. That means a scramble for good cars to fill forecourt spaces when cars are sold.'

Styles added: 'The growing conflict in Iraq and fears that consumer confidence is coming under increased pressure is constantly on the minds of everyone.'

However, its claims are at odds with other industry experts, which suggest that some used car values are heading for record lows.

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