Are we seeing demand improving for used cars?
Car dealership Lookers has today given the car sales industry something of a pickup with news that greater demand for used cars has been experienced over the last few weeks. This, when set-aside the turmoil in the car manufacturing sector, would appear to give secondhand car sales businesses some hope that demand may well be slowly filtering back into the sector.
However, it is also worth considering the fact that used car prices have fallen substantially over the last few years and profit margins are not what they used to be. Even though profit margins may have fallen this potential increase in demand for secondhand cars could literally save many car sales companies from going out of business in the short to medium term.
While normally you would expect that difficulties in the car manufacturing industry would see interest for used cars increase dramatically it is also worth pointing out that there are literally thousands upon thousands of new cars which remain unsold and ready to go at knockdown prices. The move to reduce the price of new cars, if the UK government fails to come up with a rescue plan, could see the price of used cars fall further which could in turn stimulate more demand.
Share this..
Related stories
Budget Headlines : UK Economy to fall by 3.5% during 2009
UK Economy to fall by 3.5% during 2009...
Read MoreFTB products available double over three years
01/06/2015 The number of mortgage products available to first-time buyers has risen to 2,776, double the number of products available in April 2012. Research from MoneySuperMarket has shown that partly thanks to the governments help to buy scheme, there are double the number of first-time buyer products available today compared with April 2012. Also, mortgage rates have fallen to their lowe...
Read MoreProvident Financial cautious on UK economy
Sub-prime lender Provident Financial has issued a rather downbeat assessment of the UK economy after reporting profits of £54 million for the first half of 2010, down on analyst expectations of £57 million. While you would assume that in dire economic situation such as the one faced by UK consumers today, subprime lenders would benefit but this does not appear to be the case. It is becoming e...
Read MoreNot bricking it over home insurance
Despite the recent flooding in some areas of the UK, consumers should not be too worried about home insurance costs rising, as research has shown that premiums have actually dropped. According to the AA's British Insurance Premium Index, over the first quarter of 2007, both home buildings and contents insurance premiums dropped - a symptom of the amount of choice available in a competitive market....
Read MoreEU announces EUR750 billion rescue package
The European Union has today confirmed a EUR750 billion rescue package which it hopes will inject confidence into the European currency. In effect this fund will protect the finances of the 16 euro-zone members who adopted the Euro. The breakdown of the funding is as follows, EUR440 billion in loans or guarantees from the Euro zone countries, EUR60 billion from the EU budget and EUR250 billion fro...
Read More