11:43 am, October 21, 2014
PRESSURE is on dealers to register more cars than customers want in manufacturers’ pursuit of the market share, according to CAP Automotive.
The car information experts have also said this increase in registrations will inevitably lead to faster depreciation for car owners.
Figures show that new registrations were ramped up in the second half of September and many were registered by dealers. While 41 per cent of registrations happened in the first 10 days of the month, 45 per cent took place in the final 10 days.
October is set to see an even bigger push, indicated by the incentives being offered to dealers by manufacturers.
CAP’s retail and consumer specialist Philip Nothard, pictured, said: ‘Our prediction that this September would be the biggest in a decade proved correct and it is now clear that some manufacturers are on a mission to push new registrations hard through the final quarter of 2014.
‘A number of dealers have even told me they are embarrassed by having to call people who only recently took a PCP deal and try to persuade them to take yet another one, long before they expected to change their car.
‘I have been in the industry for 26 years and have never seen such determination to throw money at new cars in the pursuit of volume.
‘While it’s good news for anyone in the market for a new car, there really is no such thing as a free lunch and the ultimate impact will be on the second-hand values of cars.
‘With depreciation forming the greatest part of anyone’s cost of motoring, the bill for oversupplying the market in this way will eventually be picked up by motorists.
‘Ordinary car buyers need to be aware that today’s irresistible deal almost always translates into tomorrow’s disappointing trade-in value.’
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