Glass’s: 4×4 spike disappeared
The traditional winter surge in values for 4x4s has failed to materialise again this year and may no longer be a feature of the market, according to Glass’s.
The last few relatively mild winters has meant that there has been no spike in retail demand, explained Rupert Pontin, head of valuations. ‘Going back five or six years, we had a couple of white winters and a corresponding retail upsurge in demand for 4x4s, especially for what you might call serious off roaders,’ explained Rupert.
He continued, ‘This established a pattern in the mind of dealers and, for a couple of winters afterwards, we saw an increase in demand from the trade but, thanks to warmer weather, no retail surge. This left a lot of dealers going into spring carrying an excess of 4×4 stock, which they had to trade out of at a loss.
‘Dealers have a long memory for this kind of error, so are now extremely cautious about the numbers of 4x4s that they buy over winter, especially if the season remains relatively mild.’
Additionally, the market was now so well-provisioned by 4x4s that they were no longer seen as a seasonal purchase by the vast majority of buyers, Rupert added.
‘The popularity of the 4×4 is so well established that almost every conceivable kind is now available and there is no longer really a lingering perception of them as vehicles that are only for tough weather. Most buyers see them as year-round family transport, creating consistent demand.’
Rupert added that for the heaviest duty 4x4s, especially V8 petrol and diesels, the problem was compounded by extremely high levels of discounting for new vehicles, driven by the high levels of road tax for the heaviest polluters and thus diluting demand from used buyers.