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.
No one can argue that there is trouble in the new car market. 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% 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. Industry experts are suggesting that the new car market won’t see an upturn for at least three years.
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 said that more cars and vans were sold throughout January 2010 than any previous year and cost of vehicles has risen for the last 3 months. Estimations have been put forward that suggest an average £300 increase.
Car leasing is also on the up it seems as the major leasers are reporting improving numbers this year. This is undoubtedly down to more people choosing to lease their cars and van rather than buying them outright during this recession. 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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