Car manufacturers and the iPhone generation

628 More

Earning the right to be successful

609 More

Knowledge is power

713 More

Selling cars – it’s all about timing

1,005 More

Truemag

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

Dramatic downturn in new car sales or just a correction?

The difference between the new and used car markets continues to baffle. As expected new car sales for March were down 30% year-on-year whilst the used car market seems to be showing no major signs of slowing at present. What’s especially baffling is that although there are examples of some dealers offering crazy deals on new cars, fully backed by the manufacturers the market, according to the headlines, continues to decline, or does it? Isn’t it really just finding its correct level, after all out of the near 2 million new cars ‘registered’ in the UK last year how many of them were actually ‘sold’ to proper customers and how many were used just to gerrymander the figures to give the appearance of the manufacturers having a larger slice of market share.

The ironic fact is that in real terms if you use the consumer price index to measure the actual effect of prices by comparing the average cost of a used car in late 2007 and now they are actually 13% down at today’s money whereas a new car despite the massively declining market is actually up nearly 2% in comparison.

Although there are some success stories in new car sales, it is a near certainty that the costly mistakes made by dealers and manufacturers relying on forced registrations will surely not be repeated in the future and therefore, at least when new car sales figure are reported, they will give a far more accurate picture of the true size of the market.

It stands to reason that car makers who have established brand strength and strong residuals will probably fare much better in the coming years.

Apr 7, 2009In51der
  • Marketing cars in a downturn….show me some innovation (or even basics)
  • After a turbulent September the hard work really begins
  • Sticking to effective advertising in a downturn
  • Price correction complete as used cars return to normality
  • New car sales formula
  • New car sales – the uneasy truth
  • Car Makers Premier League - March 2009Ford reduces debt by 38%
    Comments: 1
    1. mark
      14 years ago

      i worked for pendragon for 10 years,6 months again got made redundant and went work elsewhere,and let me tell you pendragon is by fair the best company to work for,im a bm for the company again now and the signs are very good,we will servive the best always do

    In51der

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

    14 years ago Blog, Manufacturerscar makers, car sales, economy, motor trade recession, new car buying, new car sales, Used car, Used car buying132
    Most viewed
    Top 100 UK Dealer Groups
    39,742 views
    The car sales process and the “9 point plan”
    11,803 views
    webuyanycar review – They will buy any car but beware of the asterisk
    6,186 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

    Auto Transport

    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