we-love-society.com

As the new car market plummets to another all time low, there is better news in the second hand vehicle arena as auction houses are starting to see climbing figures.

The new car market is in trouble, that isn’t in any doubt. Redundancies have been announced at 70% of the major car manufactures as the supply and demand cycle grinds to a crawl. Job losses have also come from the premium car makers Bentley which shows that no market level is safe from the poor economy. 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. Industry experts are suggesting that the new car market won’t see an upturn for at least three years.

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 reports that vehicle prices have risen now for 3 months in a row, and yet more vans and cars were sold this January than in any previous year. An average of £300 increase on the previous years levels have been the estimated figure.

Car leasing is also on the up it seems as the major leasers are reporting improving numbers this year. This is possibley a result of people making the choice to lease their vehicles during this slow economy 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.

Manheim, the auctioneer company has released figures that show a spike in the sale of wholesale vans. The spike comes lengthy long lull and marks the first increase since last September. There comes yet again another rise in sales of 4 wheel-drive vehicles this period, which makes it 6th month in a row now.

More information on this issue, check out EST