There would be a significant amount of uncertainty around used cars values if the UK voted to leave the EU in the upcoming referendum, Glass’s has said.
This uncertainty would be caused by the lack of precedents on which to base the likely impact of a vote to leave, a so called ‘Brexit.’
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Rupert Pontin, head of valuations, said: "When we try to model something like this, we gather as much relevant data as possible, looking especially at previous examples, but here there is very little to which we can refer, especially in terms of the longer term impact.
"However, what is clear is that anyone else trying to make predictions of this kind is in exactly the same position, so there is significant uncertainty and this, in itself, is very likely to have an impact on used car values.
One example Pontin gave was the possibly of a major dealer group writing down its stock by a few percentage points in order to be financial prudent in the face of the unknown, which would in itself contribute to something of an economic slowdown and compound any effects on values.
While Pontin said Glass’s had ‘no axe to grind’ in the vote, he warned there would likely be an immediate impact on residuals.
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By GlobalDataHe added that it was more difficult to foresee positive outcomes for a Brexit as they would take some time to feed through into the economy.
He said: "If, for example, the exit campaign is right and the British economy and jobs sector is given a boost by leaving, it is difficult to envisage a situation where that happens quickly. It will almost certainly take several years and there will be some pain in the meantime."
