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CUSTOMER interest in the new V registration plate has been “disappointing” and dealers are likely to come under increasing pressure by manufacturers to achieve sales targets by preregistering, Glass’s Guide warns in its September issue.
It says that the 16 per cent rise in car sales so far this year should be treated with caution attributing it to “the considerable distortion” of traditional sales caused by changes to the registration system.
“In last year’s boom month of August, over 500,000 registrations were recorded but market feedback suggests that this figure would be unattainable in September,” said Glass’s Guide editor Adrian Rushmore.
“Dealers will find it very difficult to resist the pressure from volume manufacturers to distress the new car market with forced registrations and this will increase the number of new cars on forecourts.”
According to Glass’s Guide, residual values are likely to come under pressure in the last quarter of the year amid fears of a tumble in new car prices.