A majority of dealers expect a ‘boom’ in the number of new cars sold by brokers in 2017 according to a survey by cap hpi, with 68% expecting a surge in PCH to alleviate the year’s retail targets.
Philip Nothard, retail and consumer specialist at cap hpi, said: “We need to be clear that not all manufacturers count PCH business towards target. There is the prospect for lots of cheap contract hire deals to hit the market in Q1 as manufacturers pursue retail targets.
“Pre-reg or tactical registrations will remain and continue to exert pressure on nearly new values. We expect PCH to increase across the board as it continues to prove an attractive option to motorists.”
Nothard stated that increases in vehicle excise duty (VED) due to come into effect in April this year, may provide a sales boost, and said that 48% of dealers expect March 2017’s sales to increase from March 2016.
He added: “It is clear that many manufacturers increased retail targets on an already record 2016. These vehicles will increasingly use a diverse range of channels to reach market.”