Car manufacturers and the iPhone generation

547 More

Earning the right to be successful

535 More

Knowledge is power

609 More

Selling cars – it’s all about timing

852 More

Truemag

  • Home
  • About
  • Advertise
  • Archives
  • Contact
  • Subscribe

Recession uniting the UK and US motor trade


It’s interesting to note that, as we cautiously tiptoe our way through this recession, the set of circumstances occurring here in the UK seem to be playing out almost identically in the US. Sales of new cars are at a record low, unemployment is rising, consumer confidence faltering and over-production at epidemic proportions. The start of 2009 could have easily been seen as ‘car meltdown’ but like the UK buyers in the US have been attracted to the fact that the knock-on effect means nearly new and used cars have become great looking value and have been buying them in droves. This situation has almost single-handedly kept a light shining on a very gloomy situation and again, like here many analysts are predicting that shortly new cars will be a viable choice for buyers as used car stock continues to diminish.

What’s also interesting is that SUVs, which before Christmas they couldn’t give away – like the Chevy Suburban -, have enjoyed a comeback. A similar car at the back of last year was $25,000, down by nearly $13,000 but had recently returned to around $30,000! Sound familiar? As does the issue of falling sales of the car rental companies which, again mirroring the UK, has had a dramatic affect on the volumes of used cars moving forward. Finally from the funding aspect, some US industry commentators have noted that ‘there is a very interesting inflection point where the financing of a new car becomes more attractive than that of a used one’ something that MTI has been debating over the last few weeks. So although the way cars are built, their popularity and the way they are distributed, marketed and sold may be very different in the US there are some striking parallels in the way in which both markets are behaving. Both the US and UK motor industries appear to be facing the problems head-on and in a responsible manner.

This sadly may not be said for the governments of each country; in the UK our leaders continue to dither on taking any positive action whatsovever and in the US, while they have pumped in billions of dollars to prop up the “big three” there has still only been talk about a scrappage scheme and it looks as if it may flounder in a sea of politics and accusations of protectionism.

It seems the similarities do not end with the marketplace.

Mar 26, 2009In51der
  • Motor Trade Insider Editorial Team
  • Motor trade recession may effect holiday car rentals
  • Motor Trade Insider reporting from the front-line
  • As motor trade complaints rise make sure you protect yourself
  • Motor shows in recession but only London misses out
  • Motor trade recession – everyone’s a haggler
  • Ford confirms talks on Volvo saleTata give government ultimatum on Jaguar Land-Rover jobs
    In51der

    Motor Trade Insider - Bridging the gap between the customer and the Motor Trade

    12 years ago Blog, Manufacturerschevrolet, economy, motor trade recession, new car buying, Scrappage, Used car, Used car buying69
    Most viewed
    Top 100 UK Dealer Groups
    38,730 views
    The car sales process and the “9 point plan”
    10,808 views
    webuyanycar review – They will buy any car but beware of the asterisk
    5,484 views
    Most commented
    Car sales and the power of silence…
    25 Comments
    Car dealers still not prepared to play the “we buy any car” game
    23 Comments
    A Traders Tale – Part Four
    22 Comments
    Win a pre-loaded Ipod Shuffle!
    19 Comments
    Bargain of the Week – StreetKa 1.6i Luxury
    14 Comments
    Bridal Hair Berkshire
    Fox Body to 2018 Mustang Parts
    and Accessories
    About MTI

    Motor Trade Insider
    is written by people working actively in the motor trade for people on the inside and people on the outside.

    Our aims
    Build a bridge between consumers and the trade, create Interesting and informative content, break down barriers and create better understanding, expose bad practices and rip-offs and promote outstanding products and service.
    Have something to say?
    We are always looking for experienced writers who can write good original quality posts on motor-trade-insider.com. Please contact us if you would like us to consider you. Make sure you give us details of your own blog or a link to some articles you have written.
    2017 © Motor Trade Insider
    Truemag theme by StrictThemes