Dramatically increased pre-reg activity is leading to a “confused marketplace” for new and nearly new vehicles, according to Cap HPI.

While the decline in values of used vehicles at the three years/60,000 miles slowed to 1% in June – down on the 1.9% rate during the same period last year – Cap HPI’s Black Book editor, James Dower, expressed concern at the apparent rise in pre registrations.

The company reported an increase of pre-registration activity, with volumes of 16-plate vehicles within its retail advertised data versus 15-plates at the same time last year showing an increase of 10%. 

Dower (pictured) said: “It is clear that some manufacturers have increased pre-reg activity dramatically and the volume of similar stock available to retail customers can only lead to downward pressure on nearly new values and a confused new/nearly new marketplace.”

Dower’s comments come in contrast to Glass’s new car sales analysis for the previous month, which suggested that a 2.5% uplift in new car demand during May indicated “a normal level of demand without the excessive pre-registration activity” experienced earlier in the year.

A total of 203,585 cars were registered in May which is the biggest total in May for 14 years.

Glass’s said that all of the increase had come from the fleet sector, meaning that “despite some concerns driven by the world economic position and a general lack of major investment in new initiatives, renewal of company fleets is still a priority”. 

Sales to private consumers suffered a retraction against prior year again in May according to Glass’s, though, with a 3% fall which indicates a softening in consumer confidence.

The year date position still remains 3.2% ahead of last year with in excess of 80% of retail sales funded by finance products.

Glass’s reported that demand for diesel vehicles increased by 5% in May, to 101,922, and accounted for 50.1% of the market. 

Petrol units declined by 0.6% and, despite losing ground to diesel this month remain ahead year to date, taking 48.7% market share.

Alternative fuel continues to achieve double digit growth with a 12.1% rise in May taking the total this year to 37,703 registrations – over 22% up on last year.

Eight of the top ten selling models in May also appear in the year to date list.

They are joined in May by fleet favourites Mercedes C- Class and BMW 3 series.

Jaguar were top of the registration risers table for May with a 64% increase on last year, with SsangYong second but topping the year to date stats with almost 100% growth.

Cap HPI reported that the used market steadied in June as the pace of decline in used values slowed to 1%, meanwhile.

Black Book Live reported a small drop of 1% at three years/60,000 miles, which shows a steadier picture than the previous month’s 1.9% drop. 

City car volumes leapt by 66.3% in late-plate vehicles when compared to the same point in 2015. 

Commenting on the trend James Dower, senior editor of cap HPI Black Book said: “The slight easing of stock supply, along with relatively healthy demand led to more stable average values throughout the month with retail footfall, seemingly, not too adversely affected by the referendum.”

Pure electric vehicles did continue to come under significant price pressure, however, reducing by 3.3% at the three years 60,000-mile point in June. 

Dower said: “It does appear that there is an apparent gulf between the new and the used car proposition for electric vehicles, with reluctance from retailers to purchase for stock. 

“As we see more vehicles coming into the market place stock appears to be growing and taking significant time to find a home on the forecourt.”