Used Car Shortage Expected On Older Models

The automotive trade bible, Glass’s has warned car dealers to expect a shortage in used cars over the next 12 months and that dealers should be prepared to sell more older cars and ones with above average mileage. They predict that by 2011 there will be about 2 million less used cars, aged between one and five years in circulation.

Two years ago 60% of used car stock was less than two years old, now there are in the region of 600,000 fewer newer used cars for sale. This has been bought about by consistently low, new registrations each month, which in turn has led to a growing shortage of used cars as time progresses.

Glass’s are suggesting that to combat this situation dealers operate less stringent rules when bringing cars to the forecourt. Softening the restrictions concerning vehicle condition and including older models and ones with higher mileage will go some way to bolstering used car stocks. By operating a two tier system, cars that are subject to less exacting criteria and require less preparation will not see spiralling prices that become unrealistically high.

Adrian Rushmore, Glass’s managing editor says that despite the lower availability of used cars, he doesn’t expect a “frenzied” level of activity as seen last year and that over the next couple of years and the market should be subject to the usual highs and lows that are normal within the automotive trade.