Effects of economic recession extend toward used car sales
By Andrew C., 30 Aug, 2010. 0 Comments
The effects of the economic recession extend toward used car turnover as well as motorists‚Äô behavior. According to BCA‚ 2009 Used Car Market Report, turnover for dealers was down ¬£24 billion in 2008, as they saw 360,000 fewer cars sold than in 2007.
A total of 3.67 million used cars were sold last year, the lowest figure recorded since 2004. Dealers lost £1.7 billion total in used car revenues. We already know that new car sales have dropped and that buyers are choosing smaller, lower-priced models. In fact, dealers’ revenue from the new car market dropped from £33 billion in 2007 to £28.1 billion last year. A slight increase can be observes in the 0-2 year age group, which edged up 0.3% to 856,000 last year, with dealers accounting for 87.2% of sales in this segment. Its effect was to stem some of the losses generated by fewer sales of 3-5 year-old cars (down 5.2% and 80,000 units to 1.46 million) and in the 6-8 year segment where dealer volumes slid by 19.2% to 780,000 units, taking their share down to 49.1%. Since 42% of car owners do not plan to replace their car during the recession, it seems it will take some time before a turnaround could be observed. The report also revealed that in the meantime, 38% of motorists plan to walk more in order to save money on fuel and also that 30% would avoid short journeys and cut down on short trips.
[via autocar]
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