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The second half of 2021 will see some potential used car supply challenges driven mainly by shortages of new cars.
If this happens, it will mean there will be restricted supply of late plate used stock that would normally have come from manufacturer employee car schemes and demonstrator programmes.
This may not affect all manufacturers but it will, without doubt, be a disrupting factor for some and therefore the market as a whole.
The lack of new cars will also affect the fleet market which may struggle to replace company cars, therefore altering the flow of 3-4 year old ex-contract hire and lease vehicles into the market.
As such, those cars that do come back may have a higher mileage and be in poorer condition than expected.
The coming months will be remarkably interesting as the used car market balances supply with demand post-COVID lockdowns.
Rupert Pontin is VRA deputy chair and director of insight, Cazana. This blog formed part of a VRA five-minute briefing on the used car market published today