EurotaxGlass’s says that the situation is in contrast to 2007, where supply far exceeded demand. The reduction in 2008 is a result of ‘far fewer’ dealer self-registrations.
‘In late 2007, the supply of ‘57’-plated cars significantly outweighed market demand,’ said Adrian Rushmore, managing editor at EurotaxGlass’s.
‘This year, by contrast, the number of ‘58’-plated vehicles appears to be more manageable. Many dealers still have on their books a significant number of cars at or just over 3 months old, but in general, they are not overstocked – at least, not to the extent that they were 12 months ago.’
He said fewer ex-demonstrators meant the steep falls of recent months would be stemmed. However, they will still fall – ‘just at a more gradual rate.’
Rental companies extending vehicle leases means there are fewer ex-rental vehicles in the system, too. This will continue in 2009 – particularly as many manufacturers are restricting supply to hire car firms.
Rushmore did warn of one possible problem facing dealers in 2009, though. ‘Longer periods of retention will mean ex-rental cars could have around 20,000 miles on the clock, rather than the more typical 14,000.
‘Whether this suits potential car buyers remains to be seen.’