Submitted by Steve Phillips
Car buyers are being deterred from purchasing cars due to constant bad press representing doom and gloom in the economy. Perhaps the banks have over reacted and this is exacerbated by the media.
What’s the result of this?
It’s never been a better time to purchase a used car! Buyers will find dealers begging to make a sale, offering the most competitive deals around.Most retailers have reported that May has been a more challenging month than April, although there are the occasional success stories because of some keen promotional activities to increase footfall through the showroom, but the significant factor is price!
The March plate change caused an influx of part-exchanged units and residual values became under increased pressure.
Dealers will do all they can to get people into their showrooms and do their utmost to make a sale in these very difficult market conditions. Continuous news of a global credit crunch might be causing some buyers to take stock and tighten their financial belts but now is the time to buy a used car. Since October of last year the depreciation on used cars is at a higher rate than 12 months previous. The average three-year-old car will lose around £6/800 more from its original new price in 2008 compared to 2007; this is driving down prices on the forecourts.
Don’t be afraid to promote bad news positively, there is nothing wrong with the customers thinking they are getting a cracking deal because of the market conditions. Turning your used car stock is probably more important now than before, why? Because the trade price is dropping in large chunks monthly, take a smaller profit more often!
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This entry was posted
on Friday, May 30th, 2008 at 7:02 pm and is filed under Used Cars.