F&I Management & Training

THE state of the economy and in particular the housing market may hit residuals values with some contract hire and leasing firms privately expressing fears that the coming months could be extremely tough, with used values dropping and thousands of cars remaining unsold. Recently, EurotaxGlass’s reported that the weakening in trade demand and prices was more ferocious than expected. However, Colin Whelan, business research manager at CAP, said any talk of a ‘glut’ of cars remaining unsold was alarmist. He said: ‘Leasing companies are experienced in these patterns and while we are in no position to comment on the likely impact of a period of weaker used car prices on leasing rates, significant alterations to rate books seems an unlikely response to a seasonal market slowdown.

DATED: 08.11.07

FEED: HC