Used Car Sales Outperform New Buys
Further drops in the production and sales of new cars are being reported all over the news, but the same is not so true for second hand cars. Some of the biggest names in the industry report healthy figures.
The new car market is in trouble, that isn’t in any doubt. Production has slowed down for many of the top car names, causing widespread lay offs and cuts in pay for workers. The luxury car market has also been hit, with Bentley announcing job losses last month. Official figures show a 30.9% fall in new car registrations in January as compared to the previous year according to the Society of Motor Manufactures. 1974 was the last time there was a fall of this scale and there looks to be continuation of this trend in the new future. 2012 has been the date suggested by many industry names that the new car market will see any increase in revenue.
On the flip side of the coin it seems to be that second hand car purchases are on the up, with 2 of the largest car auction names (BCA and Manheim) stating record numbers up since last year. BCA stated that more vans and cars were sold in Jan 2010 than any previous year and prices of vehicles have been on the rise for the last three months. A £300 average rise on last years figures have been estimated.
Car leasing is also on the up it seems as the major leasers are reporting improving numbers this year. This is a likely result of people choosing to lease their vehicles during this economic downturn rather than commit to purchasing them outright. Traditionaly vechicle leasing companies have done very well from periods of economic downturn, and this one seems to be no different.
The other big player, Manheim, reported that average wholesale van prices went up by £140, the first increase since September of last year. Yet another boost for 4 wheel-drive vehicles came this month which is will be the 6th month in a row.
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Tags: auto, cars, economics vehicle, sales