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BuyingBear

Car Sales - Down 10% Last Year

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The Society Of Motor Manufacturers And Traders (SMMT) will release figures later this morning, car sales were down 10% in 2005, below the psychologically important level of 2.5 million cars. They expect further falls this year.

They blame pay increases being absorbed by tax and the affect of the housing market. People certainly cut back on discretionary when there's doubt.

On an entirely unrelated note, James Crosby the head of HBOS is quitting in March at the age of 49, he was responsible for pursuing aggressive lending practices and the whole sector followed suit. Apparently he doesn't want to be a chief-exec again or work in banking, interesting.

Mr Crosby, an actuary who pocketed £1.5m last year but receives no pay-off, said that he had decided in the autumn that the time was right for him to go.

In Mr Hornby, he had "an outstanding successor" and the management team was now stronger than ever, he said. Mr Crosby said: "I have had a good innings at HBOS and now is the time to declare for me and for the bank.

"One should never overstay one's welcome. I do like the idea of not being carried out on my last legs. I would like to avoid that if possible. If there is a selfish dimension, it's that I still have time to do other things properly rather than as an afterthought."

Oh, and they're reorganising the FTSE and house builders have switched from construction and building materials to being classified as 'household goods', lol :)

Edited by BuyingBear

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The Society Of Motor Manufacturers And Traders (SMMT) will release figures later this morning, car sales were down 10% in 2005, below the psychologically important level of 2.5 million cars. They expect further falls this year...

And some manufacturers have suffered more than others - and this is quickly reflected in the showroom. I popped in to my local Mercedes dealership over Christmas and without even asking I was offered £7,000 off an E-class Estate. How times have changed. If only the property market would reflect a change in demand so quickly!

(no - I didn't buy a car - just idling away a wet afternoon...)

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There was a motor trader on the radio this morning. He said don't laugh but people generally upgrade their cars when they move house. Well we all know one of the primary reasons for that.

But like I have said before when housing transaction volumes plummet then so will every spin-off consumtion based business - I'd not included car trade in that list before, so there is another one to add.

Prices houses high enough and you will destroy what we know as the consumer driven economy.

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There was a motor trader on the radio this morning. He said don't laugh but people generally upgrade their cars when they move house. Well we all know one of the primary reasons for that.

But like I have said before when housing transaction volumes plummet then so will every spin-off consumtion based business - I'd not included car trade in that list before, so there is another one to add.

Prices houses high enough and you will destroy what we know as the consumer driven economy.

this also coincides with a steep downturn in MEW

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this also coincides with a steep downturn in MEW

Yes, but it is a chicken and egg situation. A house move triggers all sorts of purchases (and actions like having children) some of which involve MEW. Block off the potenital moves - the ladder is so stretched that many people cannot even make the jumps, let alone FTB's entering at the bottom. The ladder is broken, the sums involved are way out of line with current and prospective earnings. No chance of MEWing when the upgrade alone is draining your funds to such an extent that you are already fully stretched on your expenditure. Current housing prices are seriously eroding the potenital to drive any sort of consomer growth, this is the end point.

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Not related to car sales. Just got out of a meeting where the staff of the company i work for have been informed of a down turn in sales, caused by external factors. I knew of this before because my boss told me in confidence in october, i havent mentioned it before. I guess its public knowledge/being leaked slowly, the YOY declines started in September this year...

I am also being careful because i know we have a team in my company that constantly search the internet for my company name, i have been tracked before (i was told about it at the christmas party by a girl who works there) when i mentioned my company name on other sites!!!

Edited by moosetea

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  • 301 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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