The second hand car market is riding the storm well according to some big names in the car auction industry. This is in stark contrast to the new car market which has had a hole its hull for while and is sinking beneath the waves.
No one can argue that there is trouble in the new car market. Lay offs have been announced across the board at car firms, with major manufactures really struggling with production as demand is so low. The prestigious national icon Bentley have announced redundancies last month. This move is clear evidence that it is not only bottom level car manufacturers seeing dwindling sales. Official figures show a 30.9% reduction in new car registrations in January as compared to the year previous according to the Society of Motor Manufactures. This is apparently the biggest fall since 1974 and the trend looks set to continue. 2012 has been the date suggested by many industry names that the new car market will see any increase in revenue.
Whilst new purchases are suffering, the same cannot be said for those in the used car market. BCA and Manheim have announced that they have seen record numbers of vehicles come through their books over the previous weeks. BCA stated that more vans and cars were sold in Jan 2010 than any previous year and prices of vehicles have been on the rise for the last three months. A £300 average rise on last years figures have been estimated.
Car leasing is also on the up it seems as the major leasers are reporting improving numbers this year. This is likely being caused by people leasing their vehicles rather than committing to a buy during this ecomonic low point. Traditionaly vechicle leasing companies have done very well from periods of economic downturn, and this one seems to be no different.
Average wholesale van costs went up by close to £140 according to the other well known auction house – Manheim. The increase marks the first upturn since last year’s September. 4 wheel drive cars have seen the steadiest increases with numbers improving six months in a row.
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