A shortage of ex-fleet cars going through auction is jacking up prices, according to CD Auction Group.
Managing director Roger Woodward said ex-fleet vehicle volumes at auction fell 15 to 20 per cent in the first quarter so buyers had to pay more to secure the right stock for customers.
“If you go back to 2009, fleet sales were down just over 20 per cent in the year as a whole and almost 30 per cent in the first six months.
“Those are the cars which are now coming back, or rather not coming back, to the used market,” he said.
Woodward said he had seen typical auction prices rise by a couple of per cent of CAP Clean in the last two weeks.
“The market is still tight so condition and specification remain critical. We know some fleet operators are tempted to extend contracts and that is adding to the supply issues," he said.
According to Woodward, the current supply situation is likely to prevail until the final quarter of 2012, or even the beginning of 2013, since fleet sales did not start to recover until the close of 2009 .
Information supplied by:MotorTrader.com and Motor Trader Magazine Friday 23rd March 2012