New car sales drop 21%

CarMad · 06-10-2008, 10:15 PM

The crunch takes another bite into the car market this time showing a 21% drop in sales for September. Time to pick up a bargain and get a cracking deal if you need a new or nearly new motor, but not good if you are working in the motor trade.

BBC NEWS | Business | New car registrations fall by 21%

330dcoupe · 06-10-2008, 10:27 PM

But wouldn't it make it a more 'thriving' used car market?

Booster · 07-10-2008, 06:40 AM

It makes problems worse for the used car market. Independents can't get their hands on decent stock as the p/x's that the main dealers take it and pass on aren't around.

I'm surprised it was only a 21% drop TBH. We were 60% down on new car finance in september. Our dealers averaged around a 50% drop. Second hand is still moving but only small cars and really when people are forced to buy a car due to their old one breaking down / being stolen etc. Not many people changing because they "fancy a new car."

Another reason for the drop is the fact that firms aren't renewing contract hire agreements when they end. The price of CH has gone through the roof in recent months due to the residuals being so low when agreements end. They are now also including caveats in the contracts that state that any road tax increases are the hirers responsibility adding to people's reluctancy to take out this type of agreement.

There are some deals to be had on new cars for anyone that fancies one!!

Gareth · 07-10-2008, 07:39 AM

Don't forget that these numbers recorded are for registrations of new cars, not actual sales.

Therefore the figures are enhanced by dealerships/manufacturers being forced to pre-register cars to achieve their quarter targets....which means in some cases the sales of new cars are actually down more than 21%........

However used car and corporate business seems to be level or just up for our own sector.

Gareth · 07-10-2008, 07:40 AM

Quote:

Originally Posted by Booster

It makes problems worse for the used car market. Independents can't get their hands on decent stock as the p/x's that the main dealers take it and pass on aren't around.

I'm surprised it was only a 21% drop TBH. We were 60% down on new car finance in september. Our dealers averaged around a 50% drop. Second hand is still moving but only small cars and really when people are forced to buy a car due to their old one breaking down / being stolen etc. Not many people changing because they "fancy a new car."

Another reason for the drop is the fact that firms aren't renewing contract hire agreements when they end. The price of CH has gone through the roof in recent months due to the residuals being so low when agreements end. They are now also including caveats in the contracts that state that any road tax increases are the hirers responsibility adding to people's reluctancy to take out this type of agreement.

There are some deals to be had on new cars for anyone that fancies one!!

What's your company's split between used/new and CH funding?

dibbs26 · 07-10-2008, 07:49 AM

I wonder what the knock on effect is on nearly new 2nd hand cars?. How much do you guys think a 1 year old TTS will be around summer time next year?, they would have been out for around 16 months then.

Booster · 07-10-2008, 07:57 AM

Quote:

What's your company's split between used/new and CH funding?

In a normal month (if there is such a thing these days!!) its normally 60% used, 35% new and 5% CH.

We have a high prercentage of repeat business, averaged 65% last year. That keeps the bad debt and the dealer commissions down

Gareth · 07-10-2008, 10:12 AM

Quote:

Originally Posted by dibbs26

I wonder what the knock on effect is on nearly new 2nd hand cars?. How much do you guys think a 1 year old TTS will be around summer time next year?, they would have been out for around 16 months then.

With what sort of mileage/spec??

Mook · 07-10-2008, 10:41 AM

I reckon under £20K with average miles and spec

dibbs26 · 07-10-2008, 11:17 AM

Quote:

Originally Posted by Gareth

With what sort of mileage/spec??

Mileage around 10p-12K. Spec around mid level.

06-10-2008, 10:15 PM	#1 (permalink)
CarMad Moderator Join Date: Aug 2004 Location: Manchester Posts: 10,883	New car sales drop 21% The crunch takes another bite into the car market this time showing a 21% drop in sales for September. Time to pick up a bargain and get a cracking deal if you need a new or nearly new motor, but not good if you are working in the motor trade. BBC NEWS \| Business \| New car registrations fall by 21% __________________ BMW 330i e90 M-Sport - Review

07-10-2008, 06:40 AM	#3 (permalink)
Booster Nissan GTR Join Date: Jan 2003 Posts: 3,909	It makes problems worse for the used car market. Independents can't get their hands on decent stock as the p/x's that the main dealers take it and pass on aren't around. I'm surprised it was only a 21% drop TBH. We were 60% down on new car finance in september. Our dealers averaged around a 50% drop. Second hand is still moving but only small cars and really when people are forced to buy a car due to their old one breaking down / being stolen etc. Not many people changing because they "fancy a new car." Another reason for the drop is the fact that firms aren't renewing contract hire agreements when they end. The price of CH has gone through the roof in recent months due to the residuals being so low when agreements end. They are now also including caveats in the contracts that state that any road tax increases are the hirers responsibility adding to people's reluctancy to take out this type of agreement. There are some deals to be had on new cars for anyone that fancies one!! __________________ Audi A5 3.0TDi Quattro Sport Tiptronic

07-10-2008, 07:49 AM	#6 (permalink)
dibbs26 BMW 130d Join Date: May 2005 Location: Liverpool Posts: 1,196	I wonder what the knock on effect is on nearly new 2nd hand cars?. How much do you guys think a 1 year old TTS will be around summer time next year?, they would have been out for around 16 months then. __________________ A4 B7 2.0T FSI S-LINE Akoya Silver, Xenon plus pack, RS 6's, MFSW, Phatnoise, Auto dimming mirror, Light/Rain sensor, Bose, Isofix, Split folding seats, Rear side blinds, Rear window blind, Centre armrest, Auto boot Lid, Cargo parcel net/hooks & Loadliner.

07-10-2008, 10:41 AM	#9 (permalink)
Mook -ookachoo! Join Date: Apr 2005 Location: All over the place Posts: 12,555	I reckon under £20K with average miles and spec __________________

06-10-2008, 10:27 PM	#2 (permalink)
330dcoupe BMW 130d Join Date: Jun 2006 Location: Newcastle,London,Slough Posts: 1,059	But wouldn't it make it a more 'thriving' used car market?

07-10-2008, 07:39 AM	#4 (permalink)
Gareth Mitsubishi Evo X Join Date: Jan 2004 Location: Surrey, UK Posts: 2,161	Don't forget that these numbers recorded are for registrations of new cars, not actual sales. Therefore the figures are enhanced by dealerships/manufacturers being forced to pre-register cars to achieve their quarter targets....which means in some cases the sales of new cars are actually down more than 21%........ However used car and corporate business seems to be level or just up for our own sector.