Car manufacturers and the iPhone generation

543 More

Earning the right to be successful

532 More

Knowledge is power

607 More

Selling cars – it’s all about timing

847 More

Truemag

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

Could stability be returning to car sales?


This may be a message being regularly repeated by many people “in the know” this year, and one which will probably just as regularly be proved wrong. But the market, especially in terms of used car sales, is showing definite signs of cooling down. Of course there are pockets of the country where dealers will probably say that trade continues to be brisk, but those who sell new and used cars are seeing the scrappage scheme take over from the rampant used car performance of the first part of the year. With holiday season upon us and the kids breaking up from school this is traditionally a quieter time of year for car dealers and not just from a lack of customers but also a lack of staff, which can often lead to a showroom feeling empty.

However there is a distinct feeling in the trade that there has already been a slowdown in showroom footfall and sales of used cars are therefore sliding as a result. Dealers have seen wholesale prices rise dramatically this year in some cases as much as 25% as the bounce back happened in earnest and with supply severely diminished the search for quality used cars has intensified leaving more dealers chasing less stock and consequently pushing prices up. Until now they have been successful in passing on these increases to customers who have been prepared to pay the ‘market value’.

There are definite signs now that prices have reached a plateau and customers are again comparing the prices of new and used cars and in many cases the massive savings of 6 months ago have now all but evaporated.

Many commentators in the business cannot see this changing until at least September, if at all but certainly dealers have to work much harder to sell fewer cars to a shrinking prospect base, and volume and profitability will be affected accordingly.

The good news, however – before we get the violins out – is that many dealers have already achieved their annual budgets with still nearly half a year of trading left so we really cannot see the widespread depression of last year, but rather another correction in the next few months to stabilise the market.

If the economy can keep inching towards recovery there could very well be some good results announced at year end, and you never know there may be a few more Christmas parties than last year too.

Jul 17, 2009In51der
  • New car price hikes threaten stability
  • Car dealers may be better off returning to their comfort zone
  • Supply shortage fueling used car prices
  • Easter break has not diminished sales volumes
  • Dealers perform a difficult balancing act to protect cashflow
  • Stability returning to residual values
  • Porsche and VW on the verge of mergingAutomotive assistance programme a dead duck
    You Might Also Like
     
    Car firms get £2.3bn loan package
     
    Some positives from 2008 and here’s to a brighter 2009
    In51der

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

    11 years ago Blog, Consumercar sales, economy, motor trade recession, new car buying, profit, recession, Scrappage, Used car, Used car buying, used cars60
    Most viewed
    Top 100 UK Dealer Groups
    38,668 views
    The car sales process and the “9 point plan”
    10,755 views
    webuyanycar review – They will buy any car but beware of the asterisk
    5,433 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