Second Hand Car Sales On The Up
Further drops in the production and sales of new cars are being reported all over the news, but the same is not so true for second hand cars. Some of the biggest names in the industry report healthy figures.
There is no dispute that the new car market is in real trouble. Car retailers are having to make large portions of their workforce redundant due to a drop in demand and subsequent slow down of production. The prestigious national icon Bentley have announced redundancies last month. This move is clear evidence that it is not only bottom level car manufacturers seeing dwindling sales. Official figures show a 30.9% reduction in new car registrations in January as compared to the year previous according to the Society of Motor Manufactures. 1974 was the last time there was a fall of this scale and there looks to be continuation of this trend in the new future. Experts in the field are stating that the market for new cars will not witness an improvement until 2012 at the very earliest.
On the flip side of the coin it seems to be that second hand car purchases are on the up, with 2 of the largest car auction names (BCA and Manheim) stating record numbers up since last year. BCA stated that more vans and cars were sold in Jan 2009 than any previous year and prices of vehicles have been on the rise for the last three months. An average of £300 increase on the previous years levels have been the estimated figure.
Van leasing and car leasing is also on the up it seems as the major leasers are reporting improving numbers this year. This is likely being caused by people leasing their vehicles rather than committing to a buy during this ecomonic low point. Out of all the countries in the UK car leasing in Cardiff has seen the biggest boost.
Wholesale van prices increased by around £140 according to the other big name in the auction industry – Manheim. The increase marks the first upturn since last year’s September. The has been an increase in sales of four wheel drive cars for the sixth month running, which brands like Audi being top of the pack.
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