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Trade values for used cars are cooling off, according to Cap Black Book.
It said a “major influx of ex-rental stock” from carmakers, which have incentivised rental operators to place fresh new car orders, is putting pressure on used values.
There are also a large number of high mileage upper medium cars returning to the market.
“In terms of values there will be inevitable pressure on late plate values from rising volume and deals on new.”
While the volumes returning to the market are large, dealers are finding it difficult to source good quality stock.
Cap Black Book editor Tim Bearder said: “One of the challenges for the market over the coming weeks and months will be the shortage of sufficient quality retailable three year old stock.
“This has so far been a very strong year for used car business and several major dealer groups have revealed that the first quarter was their best trading period for a long time.
“Franchise dealers in particular have been helped by low volumes on new cars leading to more focus on used,” he said.