CAP Senior Analyst Jason Owens writing on AM-Online talks of “signs of normality” returning to the motor trade markets. He states the start of the current downturn can be traced back to as early as autumn 2007 with worse than expected sales figures at the year end. He also points out the problems caused by rapidly declining vehicle residual values and that this is at the core of many of the problems now facing the trade. Indeed CAP themselves carried out a full market re-forecast back in November to attempt to bring some clarity back to the market. His basic message is that the decline in residual values seems to have now bottomed out and some stability appears to be returning to the market after a tumultuous few months.
Let’s hope he’s right.