New Car Sales Slide Nearly 10%

[libitina]

http://www.sky.com/skynews/article/0,,30400-13512372,00.html

I've noticed lots of ads on the local radio. I think they're desperate to get rid of the old stock in time for the new plate.

Edited March 6, 2006 by libitina

[The Masked Tulip]

Two comments:

1. I went to see my local backstreet garage last week to book my car in for a service and to get a clanking car door fixed. The earliest booking he could give me was 3 weeks away whereas, last Summer when I needed a service, he had empty page after empty page in his diary.

I remember him telling me many years ago that in boom periods his trade dies off but when a recession is coming he has more work than he knows what to do with - sounds odd at first I know but that makes more sense the more you think about it.

2. I was passing my local family run small secondhand car dealer today. He normally sells the usual mid-sized family cars, smaller ones and usually has one 'flash' BMW in the show-room as an eye grabber. He has made most of his business, it seems, by selling Datsuns, Nissans and such-like over the past 30 odd years.

I was surprised how many 'high-end' cars like Mercs he had for sale including those 4x4 Mercs. I thought it odd as most of his cars usually cost about the 5Kish to 10Kish tops but these cars were nearer 20Kish. Does that mean that there has been a big increase in what people are prepared to pay for secondhand cars or are a lot of these vehicles now being repossessed and finding themselves to dealers like this one?

[benjamin]

Does that mean that there has been a big increase in what people are prepared to pay for secondhand cars or are a lot of these vehicles now being repossessed and finding themselves to dealers like this one?

no, i'd say he's decided to cash in on the limitless amounts of money available to all and sundry. depends which way you look at it.

[The Masked Tulip]

Yep, probably right. The again, this to me is just another sign of the credit bubble if small secondhand dealers can be selling 20K secondhand Mercedes 4X4s.

[Converted Lurker]

Two comments:

1. I went to see my local backstreet garage last week to book my car in for a service and to get a clanking car door fixed. The earliest booking he could give me was 3 weeks away whereas, last Summer when I needed a service, he had empty page after empty page in his diary.

I remember him telling me many years ago that in boom periods his trade dies off but when a recession is coming he has more work than he knows what to do with - sounds odd at first I know but that makes more sense the more you think about it.

2. I was passing my local family run small secondhand car dealer today. He normally sells the usual mid-sized family cars, smaller ones and usually has one 'flash' BMW in the show-room as an eye grabber. He has made most of his business, it seems, by selling Datsuns, Nissans and such-like over the past 30 odd years.

I was surprised how many 'high-end' cars like Mercs he had for sale including those 4x4 Mercs. I thought it odd as most of his cars usually cost about the 5Kish to 10Kish tops but these cars were nearer 20Kish. Does that mean that there has been a big increase in what people are prepared to pay for secondhand cars or are a lot of these vehicles now being repossessed and finding themselves to dealers like this one?

The sub 4K market is booming, the 1K market also! As an exercise (f you`re bothered) search for a 1k car on auto trader, the majority selling at this level are traders doubling up their money..also ads in local papers for buying up stock you would not believe what folk will take for their car! If it`s worth 10 (trade) offer 8 they accept! This is on the Wirral...

[Bingley Bloke]

I was surprised how many 'high-end' cars like Mercs he had for sale including those 4x4 Mercs. I thought it odd as most of his cars usually cost about the 5Kish to 10Kish tops but these cars were nearer 20Kish. Does that mean that there has been a big increase in what people are prepared to pay for secondhand cars or are a lot of these vehicles now being repossessed and finding themselves to dealers like this one?

My observations of the prestige used car market suggest that people who couldn't afford high-end luxury cars prior to the housing boom decided to MEW their houses when prices soared an interest rates were rock-bottom so they could grab a piece of the high life. Now, as their fixed low interest deals run out and higher utility bills start to bite, they suddenly find themselves with a seriously expensive car that they can't afford to run anymore. I've mentioned on here more that once before about the surprising number of Porsches and Ferraris pictured parked in the driveways of shabby-looking semis on rough-looking estates that are appearing on the Auto Trader web site and in Top Marques magazine.

[Realistbear]

I understand that there are a record number of used Ferraris on the market--MEWers can't afford to keep them with the first oil change coming up! I received a letter last week from my local Audi dealer offering any Audi in stock for dealer cost (except the 550 hp A4 R4 Quattro that can keep up with any supercar).

Retail is sinking and recession will follow and when it does HPC will regain momentum begun in 2005.

[PostalVote]

Buy one get one free. I kid ye not.

There is a dealer on the way to work (morecambe) with too cars parked on grass verge. One has the banner "Buy this car", the next says, "get this one free". Never thought I'd see the day car dealers would resort to the marketting tactics of an optician.

[Pete95]

except the 550 hp A4 R4 Quattro that can keep up with any supercar.

That'll be the 420bhp Audi RS4 - very nice car it is too, but then it should be at 50k!

It doesnt come as much of a surprise to hear new car sales are weak. Over the last 5years or so there've beem so many 0% APR offers that for many people its become easier to buy new on finance, than to buy second hand. And of course everyone MEWing their property price increase for a new Boxster.

This all comes at a very bad time for GM who are virtually bankrupt.

[Warwickshire Lad]

I saw my first 06 reg a few days ago, it was one of those new Honda Civics ... probably one of the weirdest looking new cars on the road.

Still, I think I'll stick with my shiny new Ford.

[ajh]

The sub 4K market is booming, the 1K market also! As an exercise (f you`re bothered) search for a 1k car on auto trader, the majority selling at this level are traders doubling up their money..also ads in local papers for buying up stock you would not believe what folk will take for their car! If it`s worth 10 (trade) offer 8 they accept! This is on the Wirral...

Ironically I had a true bargain car for sale around 1K about 18 months ago. Your genuine 1 owner always garaged and serviced low mileage little old ladies 1997 Corsa. I drove it myself for a month, and it was in excellent condition (but a real slug performance wise ).

Mum, who had inherited it from her sister's estate, was so disgusted with the offers she got from dealers that I think she finished up simply giving it to one of her relative's kids. It would have cost more than the car was worth for us to take it back to Oz.

[Mr Blek]

I've been checking out the car auctions and that market is still going strong.