Used Car Sales Outperform New Buys
As off-the-production-line vehicle sale figures see a steep decrease, second hand car and van auction houses are not struggling quite so much, documenting increasing numbers of second hand wheels being put through their bidding houses.
There is no arguing with the fact that the new car market is suffering. Production has slowed down for many of the top car names, causing widespread lay offs and cuts in pay for workers. 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% fall in new car registrations according to the Society of Motor Manufactures in January as compared to the previous year. This is apparently the biggest fall since 1974 and the trend looks set to continue. 2012 has been the date suggested by many industry names that the new car market will see any increase in revenue.
Whilst new purchases are suffering, the same cannot be said for those in the used car market. BCA and Manheim have announced that they have seen record numbers of vehicles come through their books over the previous weeks. 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. Increases on last year have been pitted around the £300 mark on average.
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. Vehicles with four-wheel-drive have witnessed the most improved sales, with 6 months of increased sale figures in a row.
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