AS the season of goodwill draws ever closer, we’re constantly reminded that it’s better to give than to receive.
used car values for the right cars are likely to remain high
It’s a homily that small fleet operators may do well to remember during the early part of 2014, with experts forecasting perfect conditions for used car values.
According to Roger Woodward, managing director of online vehicle remarketing specialists, CD Auction Group, the used car market is moving towards a ‘perfect storm’ of limited vehicle supply and rising demand from the retail sector.
This means the first quarter of 2014 will be a good time to dispose of in-demand, ex-company cars and buy or lease new company cars.
Roger Woodward said:
“The past 12 months have been characterised by a lack of mainstream, good used car supply and stable prices. We don’t see the tight supply situation easing much in Q1 2014 and this means used car values for the right cars are likely to remain high.
“This is partly about the maths: in Q1 of 2011 (3 years ago) new company car activity was pretty flat (up 1% over 2010) and retail activity slow (down 18% over 2010) in a post-scrappage dip. These are the cars that should now be coming to franchised used forecourts and are the core of the used market.
“They are going to be in short supply.”
So the message is clear. If you’re an SME with a small company car fleet, overcome your natural caution and take advantage of the good market, driven by the recovering economy. Make it your new year’s resolution – the retail sector will pay good money for those sought-after gems in your small fleet.
