A tale of two markets


According to many different dealers across all regions, there appears to be 2 different markets with regards to new car sales. On the one hand you hear daily stories where new cars are being virtually given away and on the other customers are confused by some dealers actually saying no to any large discount. The feedback we are getting seems to be that with the pre-Christmas news pictures of air-strips, compounds and boats full of unsold cars fresh in the mind, those cars having been built not necessarily to a particular specification, are the cars that manufacturers and dealers are most keen to shift. With model changes and specification upgrades becoming a more regular occurrence these models can become ‘old’ versions very quickly and if a customer is willing to be flexible and compromise on the exact colour and specification, a fantastic deal can be had. However on the other hand if the car has to be exactly to the customer’s specific requirements – and let’s face it many buyers want their new car to be somewhat personalised – then clearly the deal is nowhere near as good.

Of course it will also depend on which brand of car is chosen, some like Vauxhall, Ford, Saab, Nissan etc will probably be keen to ‘deal’ on anything such is their quest to trade their way out of the downturn, whilst others such as VW, Audi, BMW, Mercedes, Mini and Toyota etc would probably be prepared to negotiate on selected stock but would be unlikely to entertain ‘crazy’ deals on factory ordered cars.

By understanding which category the car a potential customer wishes to buy is in will at least determine whether they will then be buying the car of their choice or the best deal they can get, which are two entirely different approaches.

The same distinction between manufacturers can be made with regard to the UK scrappage scheme. With participation in the scheme being discretionary and requiring a 50 percent contribution to the incentive it is difficult to see what benefits there will be for the stronger car makers other than PR.

In51der
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    Comments: 2
    1. Mark Robbins
      13 years ago

      Very True, run of the mill car makers are (even though they wont admit it in public) falling over themselves to discount their more “run of the mill” models clogging up the showrooms and dare i say Auction House aisles. Only this week i attended a very well known sale where the majority of one to three year old cars were boring low spec Astra Life, Focus LX’s, Peugeot 307s, even VW Golf “S” and the like, contrast that with the few and far between BMW, Jaguar’s, Audi and Mercedes, which were attracting bids way way over book money, and as for the more desirable 4x4s forget it, there were’nt any !!! Choice for those willing and able to buy at present is paramount, and when it comes to choosing a well specified and desirable model, whether new or second hand, dont expect huge discounts and silly deals, its not going to happen, recession or not.

    2. dealaday
      13 years ago

      I agree i tried to buy a Range Rover sport tdi hse at auction and the car made £3000 into book and i had a customer lined up on it! but the point is it was a lovely car and they are achieving all the dough and more,wheras anything missing the boat is being virtually ignored.

    In51der

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

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