Wednesday, January 08, 2014
KPMG issues warning on residual value ‘price crash’ - See more at: http://www.motortrader.com/latest-news/kpmg-issues-warning-residual-price-crash/#sthash.kzQLG83g.9zjFIe3K.dpuf
KPMG has warned that the boom in PCPs in 2013 could lead to a residual crash.
John Leech, KPMG UK head of automotive, said UK new car sales in 2013, the highest for five years, were fuelled by cheap credit from carmakers.
“The real story in 2013 has been the success of the Personal Car Plan (“PCP”) offered by car manufacturers .
“The danger for car manufacturers and used car dealers is that the supply of three year old cars is starting to ramp up and, maybe in a year or two from now, will exceed demand leading to a potential residual value price crash and increased risk of loan default by consumers,” he said.
DATED: 08.01.2014
FEED: MT
