As usual in any new year there seems to be lots of customers out there buying lots of cars but hold on aren’t we supposed to be in a recession? Our information suggests that across the board customers are filling showrooms up and down the country and buying cars. Now either people are acting on our tips and going out to grab a bargain or the word SALE is as powerful as ever and the bubble will burst shortly afterwards. Traditionally car sales are buoyant at this time of year with dealers looking to start the year positively but also there are some strong numbers in terms of finance penetration. There are customers out there who may have been reluctant to take out finance usually but who are taking in their existing cars for trade-in and whilst committing maybe 10% of their cars value as a deposit, they are opting for a monthly payment but also looking to take cash back in order to save for potential tough times ahead. Amazing as it might seem given the news headlines we have come across dealers who are running at almost double the amount of used cars they would expect to be at this time of the month. Not only that but they are also making a profit.
Now this has really got us scratching our heads as figures out for December wildly contradict what we are finding, with predictions of an 800,000 deficit in overall new car sales in 2009. But with evidence of manufacturers attempting to ease pressure on their beleaguered franchise network by making it easier to sell cars for profit rather than hit unrealistic showroom standards to qualify, then there is much to be optimistic about. This could of course be a false dawn but as far as we are concerned any good news is very welcome and if dealers are selling large volumes of used cars and writing finance business to support it then we will obviously report it.
You can, however rest assured that the national press will jump on any continued bad news stories with gusto and broadcast depressing numbers. There is no doubt that real people are losing their jobs and shop closures on the high street tell their own story but the firms that have gone under where in trouble long before the “credit crunch” and talk of a recession. Are we really to assume that only a few months into a “recession” that previously profitable companies are going completly to the wall? Are the UK based motor manufacturers finances in such a bad way that they cannot sustain themselves during a downturn in demmand for new cars without laying off thousands of skilled workers? Wouldn’t we normally expect them to come back fighting hard and agressively market their new cars? In many ways a “recession” might be as much a collective state of mind as anything else and the news we are receiving tells a rather different story than the nightly news (and long may it continue).
Now, more than ever customers should go and buy a car as they may never be as cheap as they are now and we have even heard of some dealers talking about raising prices if this bullishness continues.
Remember the advice Preparation (check and compare on line) Presentation (if cars look the part on the forecourt they are more likely to be the result of high standards) and of course Price, if the price is competitive and looks attractive its worth considering.
There you have it the 3P’s 3 simple steps to initiate your quest for a deal wherever you are considering your purchase.