Number of nearly new cars on UK market almost doubles
Over the last six months, the number of nearly new cars (NNCs) on the UK market has almost doubled, says vehicle data provider Glass's. This would indicate that manufacturers are pre-registering ever larger numbers of NNCs.
The number of NNCs less than a year old sold in the UK during March was 91% higher than 6 months ago. “This is much higher than we would expect”, said Rupert Pontin, Head of Valuations at Glass's. “The unavoidable conclusion is that the vast majority are pre-registrations. It's no secret that most manufacturers set very ambitious sales targets for 2015, and there's simply not enough demand to make those attainable, in many cases. Hence the high number of pre-regs we're seeing”.
According to Pontin, franchised dealers and other car retailers had more than enough NNC stock, especially as new cars are so financially appealing to customers right now. “As a result, demand for almost any model less than two years old is weakening by the day”.
The situation was unlikely to rebalance soon, he said. "The likelihood is that pressures on values of this kind of car will remain for some time to come. Only if and when more realistic targets are set by manufacturers will the situation change."