THE booming market in used car prices is causing concern for the remarketing sector as it worries about when and how the market might go off the boil.
The Vehicle Remarketing Association (VRA) says it is still seeing rising prices during autumn at a time when values would normally be written down.
Concerns about the economic impact of ending furlough and potential Brexit implications for prices leaves “so many unanswered questions” says the VRA.
For an industry that is historically very good at predicting and forecasting, this high degree of uncertainty is unnerving. It is almost impossible to plan beyond the short term.Sam Watkins, chair, Vehicle Remarketing Association
Daily rental defleeting and early terminations
The VRA was also wary of the effect of large scale defleeting from some major daily rental companies of vehicles that had been held for longer than usual.
It also pointed out that this could possibly be accompanied by a wave of early terminations and short term contract extensions on personal leasing.
VRA chair Sam Watkins added:
“However, we just don’t know when this will happen or to what extent.
“Because values have been so strong, it is possible that this potentially sizeable wave of vehicles might simply be absorbed by the market but they could also act as a prompt for an overall realignment of values.”
Main image from BCA’s new Retail Ready digital sales channel.
Automotive and fleet writer for Broker News