Car dealers are also experiencing a credit crunch right now, after a few years of booming car sales, the financial market is hurting them badly.
New car sales at car dealerships are at the lowest point since 1966, we just put out the new license plate 58 and it’s rare to see one. This recession will also have a dramatic effect on the used car market.
Rumor has it that one of the biggest car dealerships is in financial trouble. With new car sales falling, used car prices free falling, and then factoring in the recent acquisitions of new facilities over the last year, the money spent on making the business even bigger with the debts involved he comes back with disaster written all over it. .
You won’t be alone, car dealers aren’t the only ones in trouble, when the recession hits and spending is frozen by a struggling population, car servicing takes a backseat and people can’t be blamed for that. In many cases it can be a false economy, but here we go.
At the moment it is the same as in the real estate market, it is a buyers market and car dealers are very aware of this, as a buyer you do not have to wait for the end of the month to get the best deals, any time will do.
If you’re lucky enough to be able to buy your new or used car at a car dealer, you’ll be spoiled for choice, and if you stay strong on the trade-in, you may surprise even yourself with the extra savings you can achieve.
But for car dealers therein lies the problem there aren’t enough of us in the market for a new or used car the manufacturers have created a problem for themselves thank goodness I might add it is this: cars made in the last 10 years or so are very, very reliable, so in terms of the buyer, if it ain’t broke, why change it?
Like many industries in this time of credit crunch auto dealerships are right in the middle jobs may be lost or saved in the ‘city’ but jobs will only be lost in this area automakers already have ugly workers, reduced shift numbers, slowed down and even stalled production of some vehicles, it’s a worrying time for too many families.
It’s not just here in the UK, this is affecting car dealers, manufacturers all over the world, production is coming to a halt, the side effect is fewer spare parts etc. I’m not happy to say that it’s too bearish at the moment, it will get better, but not for long yet.
In my next article I will touch on more light-hearted matters, in the meantime, when driving, short or long distances, please wear your seat belt.
