New Cars v Used Cars

Ok so it is now nearly the end of October and it is being reported that new car sales in September were at the lowest levels in a very long time. It is also to be known that none of the major car manufacturers actually posted profits throughout the UK, Europe and in America. First of all it was pretty obvious that there was going to be a decrease in profit for new cars given the amount that we have seen on the roads. Usually, going back to this time last year, by the second week of September there is usually a huge influx of cars with new registrations on the road. However, this year it seems that there was not and even now with it being almost 8 weeks since the release date, the amount of cars on the road with 58 plates is a lot less than normal. So are people buying used cars instead? Well the answer is yes and no. Yes people are buying more used cars than new cars simply because of cost. However, there are less people buying cars at the moment given the levels of finance and credit currently available. So, yes, those that are buying seem to be purchasing used vehicles. However, the number that is actually buying is much less than normal. Apparently there are many used cars dealers over in America that is counting the cost of credit crunch and lack of demand for their cars. In fact, a large proportion of the decline in sales numbers is not only because of the credit crunch but because people are downsizing their cars in terms of engine size. They are also trying to go “green” and use a car that is better for the environment. So, to summarize then; new cars v used cars – too be honest the used market is probably out in front…..but not by much.