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|Close Brothers Motor Finance, comments on the BBC’s investigation into ‘pre-reg’ cars|
|Wednesday, 02 November 2016|
Chris Bosworth, Director of Strategy at Close Brothers Motor Finance, comments on the BBC’s investigation into ‘pre-reg’ cars
“The investigation undertaken by the BBC into the new-car market has unearthed some interesting insight, and raises some tricky questions about the condition of the motor industry. With a fifth of new cars in the UK estimated to be “pre-registered”, this could have profound implications on an already dwindling market.
“A key reason for there being so many pre-registered cars is that they are often the only way dealers can achieve monthly sales targets set by manufacturers. And so, with 20% of new vehicles potentially not being on the roads for a further 90 days, this, in theory, is skewing sales figures and providing an inaccurate representation of the health of the new-car market.
“Tellingly, over the last six months private sales have continued to fall in the new-car market, causing the growth trajectory of new car registrations to steadily drop. The buoyancy of the new-car market can only be attributed to a slight rebound in diesel vehicles as well as the growth in demand of alternatively-fuelled vehicles and fleet markets. However, again these figures, particularly fleet numbers, will be skewed from the pre-registered numbers that the BBC has uncovered. In addition, we have also seen over the last couple of months manufacturers reduce the number of subsidised finance offers available, which has led to a further fall in private sales through consumers now gravitating to well-priced ‘nearly-new’ stock- boosting used-car sales”
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