Pre-registrations, PCP and imapct on the Nearly New market

[Philip Nothard 26]

Will we ever see the reality of activity in the pre-registration market, as deals are done behind the scenes and many of the numbers quoted are through 'off the record' conversations?  

The question about the impact on the nearly new market, raises the debate around when the so-called  tactical registration vehicles are sold, how they are marketed and what they are sold for and who to?

As we know, we can review the advertising platforms for the sub 12-month numbers and associate them back to increases or decrease in activity; however, why would a dealer/group advertise duplicate stock at the cost of increasing advertising spend and create an over supply scenario in the eyes of the consumers - therefore, adding pressure to potential prices achieved, etc.?

This added to the increased PCP recycle that's taking place since the explosion of PCP and pressure on the dealer network to hit their monthly and annual objective.  We all know of customers and dealers where deals have been done within the first 12 months of ownership on a 24-month PCP contract and in some cases 36-month agreement, dependent how attractive the incentives are................

Where will it end, and at what cost to profitability?

Are you on the side, that it's a good thing as it keeps the wheels' turning and creates used cars?

Or

Are you on the side that it is actually closing dealers, as their targets are based on unrealistic targets, based on fictitious previous year achievements? 

[jimreidvehicle 255]

going by the quietness I guess no one in the franchise world wants to talk about it!!