Vauxhall cutting hire car supply

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Mon 27 Mar 2006 21:25
Vauxhall cutting hire car supply - BobbyG
A report in the Auto Express states that Vauxhall are cutting the supply of cars that go to hire companies by as much as 25,000 per annum in an attempt to boost residual prices for the private car buyer.

Much as this has to be applauded, are Vauxhall going to sell an extra 25,000 cars to the private buyer? Or is this going to result in less production, possible job cuts etc.

I know that the hire companies get great deals, but surely, as a business, it is a good deal for Vauxhall to actually sell their product as well?
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Tue 28 Mar 2006 08:53
Vauxhall cutting hire car supply - cheddar
I am quite a fan of Vauxhall having had 3 in a row up to 2002, rather I am a fan of GM because I reckon the Vauxhall brand credentials are part of their problem, also the dealers IME are total carp.

Seems to me that currently a nearly new Vectra will sell for perhaps a £1000 - £2000 less than the equivalent Mondeo, the Mondeo is even more numerous in the market than the Vectra so if reduced supply raises the Vectra forecourt prices to Mondeo level it is surely only the Vauxhall die hards that will buy the Vectra, how does this help residuals for the new Vectra buyer?

So I dont reckon this is good news for anyone but for perhaps Ford, Renault et al because there cars will be seen as even better value nearly new.
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Tue 28 Mar 2006 08:59
Vauxhall cutting hire car supply - cheddar
PS: In marketing terms controlling supply needs to be strategic and be hand in hand with brand integrity, product quality and support.
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Tue 28 Mar 2006 09:33
Vauxhall cutting hire car supply - T Lucas
They all seem to do this from time to time,then 9 months later when they have fields full of unsold new cars they have a quiet word with Mr Hertz and Mr Avis who ends up with new Vauxhall/Ford/Fiat etc at even lower prices than before.
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Tue 28 Mar 2006 10:52
Vauxhall cutting hire car supply - Vansboy
Could have something to do with the fact that they have 'newish' models, within their range & need to ensure supply for retail & smaller fleet purchases - at a higher margin - than 'dumping' in the daily rental fleets.

Or, possibly, they'll find another brand has done a better deal, to the hire companies!!



VB
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Tue 28 Mar 2006 11:10
Vauxhall cutting hire car supply - alex

Will this new Vauxhall ruling apply to car rental firms in the UK or throughout mainland Europe too ?
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