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.
The new car market is in trouble, that isn’t in any doubt. Production has slowed down for many of the top car names, causing widespread lay offs and cuts in pay for workers. The luxurious vehicle market has also seen its far share of problems, with Bentley submitting job losses last month. Official figures show a 30.9% fall in new car registrations according to the Society of Motor Manufactures in January as compared to the previous year. 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. 3 years is the predicted length for the slump in car sales according to many industry analysts.
On the other side of the river it seems used car sales are on the up, with two of the biggest auction houses (BCA and Manheim) declaring record volumes over the last few month. BCA announced that there were more sales of cars and vans in January this year than any year previous and the vehicle prices have risen for three months on the trot. They estimate an average of rise of £300 on last year.
Car leasing is also on the up it seems as the major leasers are reporting improving numbers this year. This is a likely result of people choosing to lease their vehicles during this economic downturn rather than commit to purchasing them outright. Traditionaly vechicle leasing companies have done very well from periods of economic downturn, and this one seems to be no different.
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. 4 wheel drive cars have seen the steadiest increases with numbers improving six months in a row.
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