Analysis
Jigsaw Finance’s Nigel Hawkins gives his observations on the PCP market
CAP’s bulletin stating pressure on late plate used car values is a "shadow hanging over the market" is a result of Black Book Live identifying an increase in the number of cars being sold to rental companies along with the incentivising of new car business for retail customers. They also predicted there would be a gradual erosion of values at most years for most models after a long period of strength in three-year-old car values.
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Assurances were also given the market would not go into free fall and this was purely down to the factors above and that depreciation is a fact of life.
It appears sourcing the right stock at reasonable prices is the major challenge dealers face, irrespective of changing values. The short supply of ex-fleet vehicles is still the major concern for used car retailers.
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