Monday, 20 December 2010

A Month to Forget

December 2010 has been one to forget for the beleaguered Car Industry. With the banks about to cash in their £7 billion + bonuses the car industry is reflecting on an awful end to 2010. Normally a quiet time of year for car sales anyway, the exceptionally hard cold spell we are currently experiencing has put the big freeze on anyone considering changing their car.

With the country quite literally frozen solid many people who were considering changing their car are putting off buying a car until at least the New Year. With the snow and ice covering the UK and you can understand why people would not want to be driving a new car at the moment. In fact the only people changing their car at the moment are those that are able to buy a 4x4.  Whilst they are bucking the trend and 4x4’s selling like proverbial hotcake, for many people those types of cars are out of their reach financially and to some people even morally!

Many are asking if the Car Industry will pull through, of course it will. A few of the smaller dealers may go out of business and perhaps some of the larger ones may struggle with cash flow, especially if they rely on high volume and low margins but many will have been prepared for a quiet December and will hopefully managed their stock and cash accordingly. But, inevitably lots of cash will be tied up in stock that isn't moving and in a lot of cases depreciating each month dealers will be offering some great deals to those that do manage to get out and can be persuaded to change their car now.

Those buyers that are holding out for nicer weather may be missing out on the great deals that are out there at the moment. As soon as there is a prolonged break in the weather, the industry will pick up again, find its feet and probably break into a sprint. Those people who didn’t or couldn’t venture out in the snow and ice will be coming out of hibernation and all hoping to grab one of those great deals. The chances are though, those great deals will have disappeared with the snow and within days the clogged forecourts will be virtually empty with only the cars that no one else wants remaining.

Dealers will have a lot of lost profit to make for and in true “Supply and Demand” fashion the prices may start to rise to help them try and recover from the “lost" December. This may mean there is no such thing as a January Sale in the Car Industry in 2011.

Dealers will be on the look out for good quality car stock in 2011 and for people who are thinking who will buy my car it could be a great time to sell your car online to a dealer rather than trying to find a buyer your car privately.

Sell to a car dealer through Car Arena, they will look after everything for you and ensure you are paid in full when they collect your car

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