According to Mike Pilkington, managing director of vehicle remarketing solutions (vrs), a number of factors have created benevolent market conditions for remarketing vehicles.
He said: ‘Consumers remain relatively resilient despite recent interest rate rises. We have seen unprecedented demand for this time of year from dealers across the UK for nearly-new and used vehicles.
‘Our average stock turnaround is now only six days and prices have remained firm over the summer.’
Pilkington said that manufacturers that have stock available for sale should be taking advantage of the current buoyant demand and reduce stock levels before increasing rental returns in October hit the market.
However, he warned: ‘The concern now for nearly-new vehicles is that manufacturers will choose to pre-register large volumes of stock that will have an immediate and direct effect putting downward pressure on residual values.’
VRS has seen demand from dealers for nearly-new and used vehicles rise constantly throughout 2006.
Bosses attribute the increased demand to flat sales of new vehicles, which has led to a focus on used vehicles from dealers seeking to maintain profit margins.