Fleet News

Marketwatch: SUVs face tough time as new models flood in

AN avalanche of new car launches next year will spell bad news for the residual values of certain market sectors – and SUVs could be among the hardest hit.

According to research by used value expert Glass’s, there will be more than 120 all-new cars launched in the UK in 2006, which is almost double the previous record tally of 66 this year. And SUVs will be the biggest growth sector, with 25 new models launched, including cars such as the revised Toyota RAV4, Suzuki’s Grand Vitara, the Audi Q7, Fiat Sedici and Vauxhall Antara.

Alan Cole, editor of Glass’s Market Intelligence Service, said: ‘With total new car registrations down by nearly 6% during the first 10 months of the year, dealers will welcome anything which might stimulate demand.

‘There is, however, the danger that manufacturers may be jumping on the bandwagon of certain fashion-led niche markets just as demand is becoming satisfied.

‘In the case of SUVs, the increasingly vocal anti-SUV lobby may have an additional negative effect. If more owners feel stigmatised, the popularity of these cars may diminish at a time when new model growth is at its highest, increasing pressure on used prices.’

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