BVRLA slams 'maverick' Glass's in RV spat

Date: 17 January 2008   |   Author: Tom Webster

John Lewis

"Late last year, at one of our twice-yearly meetings with Glass's, a drop of this magnitude was not even on their agenda," said BVRLA boss John Lewis. "This is why it's all the more surprising that Glass's has come out with what, in our view, is a maverick perception that seems to follow the trend for gloomy economic news when, in reality, the pundits say that we are merely heading for a slowdown in growth rather than the recession bandwagon, which the Glass's forecast would seem to be jumping on."

The BVRLA's predictions are based on its own data gathered from more than 20 leasing companies. "We believe the three-year-old market will continue to hold up," said Lewis.

Glass's issued a response to the BVRLA criticism, standing by its prediction, with Glass's managing editor, Adrian Rushmore, pointing to the increased cost of borrowing, stagnant house prices and widespread reports of a UK 'credit squeeze' affecting consumers' disposable income and confidence.

However, a lack of stock could stem the decline, as new car sales in 2005 were down on the previous two years, so there will be fewer three-year-old cars arriving in the market this year.

"There will still be pressure on used prices because, even if the supply is slightly less, this is likely to remain too high in relation to anticipated demand," said Rushmore.

The industry's other big RV player, Cap, was reluctant to be drawn in to the argument, but described this year's market as "challenging" and said there is "no evidence of an imminent crash".

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