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Europe Car Sales Fall To Two-Decade Low On Unemployment

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Bloomberg Businessweek

News From Bloomberg

'Registrations decreased 6.3 percent in June to 1.18 million vehicles from 1.25 million cars a year earlier, the Brussels-based European Automobile Manufacturers’ Association, or ACEA, said today in a statement. First-half sales fell 6.7 percent to 6.44 million vehicles. The June figure was the lowest for the month since 1996, and the six-month number was the least since 1993, said Quynh-Nhu Huynh, the group’s economics director.

The unemployment rate was 12.2 percent in the euro area in May, and was probably at that level for the entire second quarter, according to the median forecast of analysts surveyed by Bloomberg. Executives at Peugeot and French competitor Renault SA (RNO) reiterated predictions this month that the region’s car market will fall 5 percent in 2013 in the sixth annual drop.

The ACEA figures come from the 27 nations that were European Union members prior to Croatia joining this month, plus Switzerland, Norway and Iceland. Deliveries in western Europe, which excludes countries that have joined the EU since mid-2004, fell 6.2 percent to 1.11 million vehicles in June and 6.6 percent to 6.06 million units in the first half.'

BBC

'The UK was the only major car market to expand, with sales up 13.4% in June and 10% for the six months.

European car sales have seen an almost uninterrupted fall for two years, due mainly to recession in the eurozone.'

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Eurozone being forced to live within its means, meanwhile the UK parties on?

The UK is partying on cheap credit. WHEN the cheap credit runs out then the fallout is not going to be pretty.

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Just to add:

Most people here are getting along just fine driving around 05, 06 and 07 registration cars. Not importing new cars and piling on thousands in debt really is really not hurting people, they are not out in the street shouting wheres my new car.

In reality what happens is we import the ex-fleet and nearly new 3yr old cars from the UK.

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How many of the UK purchases are now under mobility agreements etc. Are extra mobility rights being granted to help UK car sales.

Presumably mobility scooters aren't included in the figures although out and about they seem to have escalated in numbers recently.

With real wages going down it's hard to see how more people can afford more new cars even with credit crazily cheap. Maybe they can despite the tales of peoples financial belt tightening or are car prices also being severely discounted to help sales volume.

Edited by billybong

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How many are leased? I've had a couple of people with nice new cars tell me recently it's a good deal. They look at it just as another monthly expense. I've always assumed it was a bad deal.

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How many are leased? I've had a couple of people with nice new cars tell me recently it's a good deal. They look at it just as another monthly expense. I've always assumed it was a bad deal.

Leasing/finance can be a decent alternative to buying a new car and selling it after three years as it offers you a fixed expense, no need to front a lot of your own money and no hassle when it comes time to get rid. It's still going to typically work out a bit more expensive than buying outright with your own money and then selling/trading it in, though.

But of course, buying a new car and selling after a short period of time is anyway financially a very bad idea indeed. You are swallowing big depreciation which will likely be more than the sum of all the other costs (tax, insurance, fuel, maintenance) put together. Only really recommended if you have the means, which of course many of the legions of people on various car leases or similar finance deals don't.

Still, they get to drive a 'new' car all the time which I'm sure impresses their peer group and the neighbours and it all goes on the credit bill, which we all know never needs to be worried about ...

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Leasing/finance can be a decent alternative to buying a new car and selling it after three years as it offers you a fixed expense, no need to front a lot of your own money and no hassle when it comes time to get rid. It's still going to typically work out a bit more expensive than buying outright with your own money and then selling/trading it in, though.

But of course, buying a new car and selling after a short period of time is anyway financially a very bad idea indeed. You are swallowing big depreciation which will likely be more than the sum of all the other costs (tax, insurance, fuel, maintenance) put together. Only really recommended if you have the means, which of course many of the legions of people on various car leases or similar finance deals don't.

Still, they get to drive a 'new' car all the time which I'm sure impresses their peer group and the neighbours and it all goes on the credit bill, which we all know never needs to be worried about ...

I'd say one of them just didn't want the hassle (a properly high powered business woman) - and the other I would say I got the impression, at least partly, liked to impress people, but seems to have plenty of money also.

Edited by oldsport

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How many of the UK purchases are now under mobility agreements etc. Are extra mobility rights being granted to help UK car sales.

Presumably mobility scooters aren't included in the figures although out and about they seem to have escalated in numbers recently.

With real wages going down it's hard to see how more people can afford more new cars even with credit crazily cheap. Maybe they can despite the tales of peoples financial belt tightening or are car prices also being severely discounted to help sales volume.

http://www.smmt.co.uk/2013/01/2012-new-car-market-tops-two-million-units-hitting-four-year-high/

You can download the full break down of sales here,by brand,fuel type,purchase,leasing etc.

Motability budget is roughly £1.5 billion.So it's probably less then 5% of the market.Obviously,in some geographical areas it will make up substantially more of local new car demand than it does elsewhere.

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http://

www.smmt.co.uk/2013/01/2012-new-car-market-tops-two-million-units-hitting-four-year-high/

You can download the full break down of sales here,by brand,fuel type,purchase,leasing etc.

Motability budget is roughly £1.5 billion.So it's probably less then 5% of the market.Obviously,in some geographical areas it will make up substantially more of local new car demand than it does elsewhere.

Thanks for the link.

So in manufacturing terms it looks like the vast majority of the benefit of increased UK sales goes to overseas manufacturers as out of about 2 million cars sold each year apparently only about 270,000 are made in the UK (the rest of the UK production of about 1.27 million cars is apparently exported).

Sales dealers/distributors etc in the UK benefit from the increased sales as well of course.

On the Motability budget it's probably a smallish percentage of the whole but likely larger than admitted due to creative accountancy and exclusion of various costs and tax deductions etc.

Edited by billybong

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How many of the UK purchases are now under mobility agreements etc. Are extra mobility rights being granted to help UK car sales.

No. Quite the opposite. But don't let that interfere with any blind prejudice you hold.

Presumably mobility scooters aren't included in the figures although out and about they seem to have escalated in numbers recently.

It's one of the hazards of living longer. Perhaps one day, you'll need one.

They're a helluva price and although available on the Motability scheme you'd be nuts to go for the deal. Personal purchase is a better bet.

With real wages going down it's hard to see how more people can afford more new cars even with credit crazily cheap. Maybe they can despite the tales of peoples financial belt tightening or are car prices also being severely discounted to help sales volume.

Yes. I walked into a Volvo showroom and was offered 30% off before I even said what I was interested in.

I've just ordered a new premium brand car (cash) and did a deal so good I couldn't have hoped to match it 3 years ago.

Also, manufacturers are doing spectacular discounts if you take the finance. There's nothing to stop you taking the deal and paying the credit off after one month for a small fee.

Why does the old Motability chestnut always come up when car sales are mentioned? Some people seem to think they're giving away free cars..

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Why does the old Motability chestnut always come up when car sales are mentioned? Some people seem to think they're giving away free cars..

Volvo have metal to shift. Were you looking at a soon to be updated model?

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Why does the old Motability chestnut always come up when car sales are mentioned? Some people seem to think they're giving away free cars..

Quite the contrary - and there's no call for the ad hominem and that's generally accepted to be a ploy used by those having lost the debate.

I'm all for disabled people of any age (young to old) having all the support and means available to enable and support their mobility as well as their general condition. However it's seemed quite evident for some time that the mobility schemes are designed and motivated at least in large part to support parts of the banking sector that are involved in it and of course the motor industry suppliers etc.

I was merely interested in whether the motability schemes and other factors such as heavy discounting might be influencing the UK's unusual statistics - the UK being the only country with increased sales and apparently quite a large and sudden increase at that. It seemed a fair enough question or is that another subject that's PC off limits these days.

At least one poster did offer a level headed and reasonable response to help towards clarifying matters.

As for the green text in your post it's full of thoughtless, biased and incorrect assumptions with little to offer as well as clarifying little or nothing.

Edited by billybong

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Volvo have metal to shift. Were you looking at a soon to be updated model?

No. The offer was as I walked through the door, only looking for a used car for my son-in-law. No restriction on its scope to individual new models.

They all have metal to shift. The only question is how big the pile of cars stacked at the docks is.

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Quite the contrary - and there's no call for the ad hominem and that's generally accepted to be a ploy used by those having lost the debate.

I'm all for disabled people of any age (young to old) having all the support and means available to enable and support their mobility as well as their general condition. However it's seemed quite evident for some time that the mobility schemes are designed and motivated at least in large part to support parts of the banking sector that are involved in it and of course the motor industry suppliers etc.

I was merely interested in whether the motability schemes and other factors such as heavy discounting might be influencing the UK's unusual statistics - the UK being the only country with increased sales and apparently quite a large and sudden increase at that. It seemed a fair enough question or is that another subject that's PC off limits these days.

At least one poster did offer a level headed and reasonable response to help towards clarifying matters.

As for the green text in your post it's full of thoughtless, biased and incorrect assumptions with little to offer as well as clarifying little or nothing.

The general acceptance of the ad hominem might be the case down at the place where you drink, but not anywhere I've ever raised a G&T.

As for the green text, apart from the swipe at your own grasping in the fog for something spurious to raise as an issue, the rest is neither biased nor incorrect. It is entirely factual.

Facts:

1. The availability of the relevant benefit is being severely curtailed. The Motability scheme itself has been significantly shrunken in the last 3 years

2. You might need s scooter yourself, if you are lucky enough to live long enough. If using your own money, you'll conclude they are wickedly expensive.

3. The Motability Scooter scheme isn't an awesomely good deal, simply because the equipment itself is massively overpriced

4. Huge, huge discounts and finance deals are available from the dealers, on a scale that I personally couldn't find 3 years ago.

Just to help you clear the mental fog that's leading you astray, let me give you a financial perspective of the Motability scheme. I've been eligible for ten years. Every time I need a new car I look at the deal, compared with what I can get on a new car. I then do the full financial analysis - DCF, NPV, servicing and other costs. As a result I've always bought my own car, with my own cash.

The scheme helps people with needs and I salute your espoused support for it. There's no need to go on a fishing expedition into the swamp - we get enough of that from the Torygraph.

Edited by Stainless Sam

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So in manufacturing terms it looks like the vast majority of the benefit of increased UK sales goes to overseas manufacturers.

Ash die back could really hit British car manufacturing. Just when you think things couldn't get worse for British car manufacturer.

Morgan factory

iY0KGCLzendg.jpg

Edited by gf3

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The general acceptance of the ad hominem might be the case down at the place where you drink, but not anywhere I've ever raised a G&T.

As for the green text, apart from the swipe at your own grasping in the fog for something spurious to raise as an issue, the rest is neither biased nor incorrect. It is entirely factual.

Facts:

1. The availability of the relevant benefit is being severely curtailed. The Motability scheme itself has been significantly shrunken in the last 3 years

2. You might need s scooter yourself, if you are lucky enough to live long enough. If using your own money, you'll conclude they are wickedly expensive.

3. The Motability Scooter scheme isn't an awesomely good deal, simply because the equipment itself is massively overpriced

4. Huge, huge discounts and finance deals are available from the dealers, on a scale that I personally couldn't find 3 years ago.

Just to help you clear the mental fog that's leading you astray, let me give you a financial perspective of the Motability scheme. I've been eligible for ten years. Every time I need a new car I look at the deal, compared with what I can get on a new car. I then do the full financial analysis - DCF, NPV, servicing and other costs. As a result I've always bought my own car, with my own cash.

The scheme helps people with needs and I salute your espoused support for it. There's no need to go on a fishing expedition into the swamp - we get enough of that from the Torygraph.

not digging at you, but you say you have been eligable for 10 years, and you say EVERY time you needed a new car.

How many times does one NEED a new car?...it could be you are getting worse, but I was using a 9.5 year old car and had no plans to replace it until it was recently destroyed.

I suspect that the Motability scheme was another that many people used to get a new car every 3 years....no need, just an entitlement..and of course, as other posters have mentioned, a big boost for the banks and the sellers.

As for scooters, the margin comes in here in the UK...A firm I know imported them from Isreal...the mark ups are ridiculous...the firm is poorly run but that doesnt matter when 300% markup is available.

Edited by Bloo Loo

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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