Glasses Predicts 2011 Used Car Shortages

Used car market experts Glasses, have recently made predictions that by 2011 used cars from 1 and 5 years of age will drop significantly by 2 million units, despite the limit on the supply of cars Glasses is suggesting that prices aren´t going to rocket in price.

To prevent severe harm to sales, the experts have advised dealerships across the UK to maintain a higher level of vehicles of an increased level of age and mileage to combat the expected drought within the next 12 months.

Although it is expected that dealerships will be hit hard by this turn of affairs, it isn´t the first time where dealerships have had to battle their way through difficult circumstances. During 2008 when the recession across the UK was reaching its high point dealerships saw a fall in the number of newer cars sold. This was due to the lack of disposable income amongst the majority of UK citizens. Glasses managing editor Adrian Rushmore says that in 2008 over 60% of franchised dealer stock consisted of cars aged younger than 2 years and this year we are expected to see a decrease of 600,000 of similar age available for dealers to retail.

The expected outcome of this would be that we can expect to see a dramatic increase in competition amongst the industry however a price rise is not anticipated.

Adrian Rushmore goes on to say that "the most obvious solution for dealerships to remain alive and competitive would be to introduce older vehicles that have more mileage onto the forecourts, which could be embraced onto a 2 tier system which allows standards of preparation for older vehicles".

published: 02/09/2010