SHORTAGES of new car stock caused by WLTP will continue well into 2019, prompting more retail buyers to switch into the nearly new market.
Startline Motor Finance said it has seen rising demand for finance for cars under three years old in recent months – a trend that looks set to continue at least into the early part of next year.
Chief Executive Paul Burgess said: “September new car figures showed starkly just how much WLTP is hitting the new car market. The models that people want are just not available in many cases and delivery times being quoted often run into 2019.
“While company car buyers will tend to hang on for the right model for reasons of tax, retail new car buyers are much more likely to switch into used alternatives and we are seeing lots of evidence of this, as are other motor finance providers.”
The trend is causing an uplift in the value of cars under three years, even in relation to the current, buoyant general used sector.
Burgess added: “In the past few years, new car deal incentives have been so strong that the nearly new sector has been relatively soft. However, that is now changing quite quickly.
“Some dealers, especially franchise holders, are responding to this situation by increasing the amount of nearly-new stock that they are holding and becoming, at least temporarily, specialists in this part of the market.”
Startline also thinks it possible that by the time the WLTP situation starts to resolve itself next year, there could be some very strong economic headwinds caused by Brexit, which again could help to sustain interest in relatively young, used cars.
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