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

Small car equals small profits

Small really is beautiful
One obvious effect of an economic downturn is that it nearly always leads to people looking harder to find bargains. Whether in their food shopping, household goods or indeed the cars they buy. Buyers trying to save money will look at lower costs in retail price, insurance, fuel and running costs, so it is hardly surprising that a greater percentage of cars sold during this recession have been in this economical category. Cars like the Citroën C1, VW Fox or Peugeot 107 are not only inexpensive new, they also represent great value as a 2-3 yr old used example, which in turn means they become very sought after.

If the trend and clamour (helped in large part by the scrappage incentive) for these types of cars continues car makers will be forced into designing and producing more cars like this far into the future. This will be good for drivers looking to drive fresh looking, nicely specified and, most importantly inexpensive smaller cars which are far cheaper to own. It could very well be the case that these type of small, economical cars increase even further in popularity as more and more people buy into environmental issues. But for every ying there must be a yang and from the car manufacturers and dealers point of view these cars could be far less profitable to sell putting far more stress on margins.

One other point to mention is that it stands to reason that buyers will increasingly look to ensure that the cars they buy have better residuals and finance providers being far more cautions in the RV’s they set on PCP packages. In the next 3 years cars like the Mini, Polo and the funky Fiat 500 will probably top the buyer’s lists with the likes of Kia and Hyundai continuing to barge into the market and the more obscure makes, which miss the boat in terms of image style or aspiration, will continue to struggle and ultimately fade to black.

Sep 7, 2009In51der
  • Profits on late plate used cars an endangered species
  • The 1000th article
  • On the inside reporting the good, the bad and the ugly
  • Clawing back the profits
  • Part-exchanges – supply and demand equals rising prices
  • A small glimmer of good news this week
  • The 1000th articleHPI joins forces with Police over car cloning
    In51der

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

    13 years ago Blog, Consumer, Manufacturerscar makers, car manufacturers, economy, kia, motor trade recession, new car buying, profit, Scrappage, Used car buying133
    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