At this time auto car dealers are having a credit crunch too, after a few years of booming car sales, the financial market is hurting them badly.
New car sales at auto car dealers are at the lowest point since 1966, we have just had the new 58 registration number plate out and it is rare to see one. This downturn will have a dramatic effect on the used car market too.
There is a rumour going round that one of the largest auto car dealers is in financial trouble. With new car sales being down, used car prices going into freefall, then taking into account recent acquisitions of new premises over the last year, money spent on making the business even larger with the debts involved is coming back with disaster written all over it.
It won’t be alone, auto car dealers are not the only ones in trouble, when recession hits and spending is frozen by a struggling populace, car servicing takes a back seat and you can’t blame people for that. It may in many cases prove a false economy but there we go.
At the moment it is the same as in the property market, it is a buyer’s market and auto car dealers are very aware of it, as a buyer you don’t have to wait for the end of the month to get the best deals, any time will do.
If you are fortunate enough to be able to buy your new or used car from an auto car dealer, you will find yourself spoilt for choice and if you stay strong in the bartering bit you can surprise even yourself with the savings, extras, you can achieve.
But for auto car dealers therein lies the problem, not nearly enough of us are in the market for a new or used car, manufactures have created a problem for themselves, thank goodness I might add, it is this: Cars made over the last 10 years or so are very, very reliable, so in buyer’s terms, if it ain’t broke, why change it?
Like many industries at this credit crunch time, auto car dealers are right in the thick of it, jobs might be lost or saved in the ‘city’, but jobs will only be lost in this area, car makers have already laid workers off, down numbered the number of shifts, slowed, even stalled production on some vehicles, it is a worrying time for far too many families.
It is not just here in the UK, this is affecting auto car dealers, manufacturers globally, production is grinding to a halt, knock on effect means less replacement parts and so on. I take no pleasure in stating it is all too much doom and gloom at the moment, it will get better but not for a long while yet.
In my next article I will turn to jollier matters, in the meantime though, when driving, short distance or long, please, please, please wear your seat belt.