The Germans have been pumping cars into the UK market for many years. Loads of cheap PCP deals, with over inflated GFV's,all designed to give the punters low monthlies. The problem now is that most of these have been rep spec diesel models, fewer folk are buying diesel cars this year, also there are so many coming onto the market, it pushes used prices down.
Big groups like Pendragon, need big volume sales to make any money, so with the used diesel market slowing down significantly, they are stuck with lots of used stock they cannot shift.
They also have been relying on self registered sales to hit faintly ridiculous manufacturer targets, so when customer enquiries fall, they are struggling to shift them.
This has been bubbling for some 3 years now, and is starting to bite. Big PLC dealer groups like Pendragon, are usually pretty inefficient businesses, and at some stage they come unstuck.
The PCP bubble, if it bursts, will affect manufacturer finance companies, not necessarily the dealers, as the GFV's are guaranteed by the finance house, not the dealer. If customers hand their cars back , the finance companies have to dispose of them. The next 12 months in the motor trade will be interesting, I have worked in it for the last 25 years, so have seen most things, so nothing will surprise me.