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Posts Tagged ‘recession’

With The VAT decrease of this year everyone is now in panic that it is suddenly going to rise which of course it is and this is a reason why people are not going to buy a new car. People need to remember what the prices were like before the recession as this is what cars will be going back to when it all ends, it really is no different to the time before recession so do not panic.

With fuel rising more and more every year there have been thousands of families that have sold all of their vehicles apart from one in an attempt to save a bit of money. Of course it does save you a bit but is it really that practical.

At the moment if you are looking to buy a certain car then you may actually have a bit of support from the government. However the government are giving people money for their old cars if you scrap them to get something that is better for the environment, then again they are bringing in taxes for people with green cars?

Yes you are doing your bit to save the planet and helping to fix some of the damage the human race has done to it. The main issue with the government is that that make up any old excuse to put a tax on something, they are actually thinking of charging people to leave great Britain. It is doubtful that the government will have to pay for their trips so why should we?

However until such a green car comes out that is actually worth going after something a bit less greener so why not look into Audi Cars or of course a Audi R8

Failing this you could even look into getting Used Cars however it is really up to you on what you do on this but I would say the best thing to do is just wait and see if things are actually going to get worse before you do anything.

We are constantly hearing news reports of how the recession is hitting the motoring industry badly. Every week there is a story of how no one is buying new cars because people just aren’t going to buy a new Alfa Romeo. However, there are sectors of the motoring industry that are doing well, but we never hear about them.

The used car marketing is one of the only sectors of the motoring industry that is doing well. Prices of used cars have been going against most things in the recession, they have actually been going up. This may not sound very positive for the customer because you will have to pay more for used cars for sale, however, if you are trading in, you will get more money for your old car.

The reason why the used car market has become so popular is because many people are trying to save as much money as possible. One effective way of doing this is to buy a second hand car rather than a new one. One recent thing that definately hasn’t helped the position of the new car market is that due to the recession, new car prices have actually gone up. You would have thought that manufacturers would never even consider raising car prices, however, as a result of poor exchange rates, they have been forced to.

As a result of more people opting for used cars, the demand for these second hand cars has seen a dramatic rise. As the demand rises, and with the scrappage scheme in place, it’s becoming harder to buy a second hand car. Now because used car dealers can’t keep up with the demand for used cars, they have raised their offer for buying your old car, making this deal sound better for the standard car owner.

The only problem with this is that although you are being paid more for your old car, when you buy a new second hand car, it’s costing you more. So because the price rises are on both sides, selling and buying, you are not actually getting any extra cash for your car because you lose it when you buy a new one, but the majority of the public would still prefer to buy a second hand motor rather than a buy a Honda straight off the production line at the factory.

It looks like the few people that will lose out because of this are the customers that don’t part exchange an old car.

The giant of the motoring industry, General Motors, who own brands like Chevrolet, GMC, Cadillac, Pontiac and Buick, have reveasleda line-up of new cars. Less than a month ago, General Motors recovered from 40 days of bankruptcy where the government pumped over $50 billion into the company, now making it 60% owned by the taxpayers.

Now that General Motors have managed to get out of their bankruptcy rut, they are starting to look to the future and see how they can change. At the beginning of August they announced how they are exploring new ways to sell their cars. A trial method they are running from August 11th is selling the new cars on eBay, the online auction site.

Last Tuesday, August 11th, General Motors invited a group of hand chosen consumers to Detroit for a special event. The reason for the event was to show off the new series of cars that General Motors are releasing for various brands. After they bounced back from bankruptcy, General Motors have been looking at their current car models, and they want change.

At the moment, most of their cars are large tank like vehicles that do very little miles per gallon, at one point these were very popular with Americans, however, motorists are choosing smaller and more greener cars these days. To try and attract younger and greener customers, they have created a series of new models for their brands that are smaller and more fuel efficient.

A couple of the cars announced that will be very popular is the Chevrolet Volt. This car is scheduled for release sometime in 2010 and it’s become popular due to the number of miles per gallon it can do. Currently, it’s been reported that the new Volt can do around 230 miles per gallon of city driving.

The other note worthy car is the new Cadillac that’s been announced. The new model Cadillac, that comes with either rear wheel or 4 wheel drive, is going to be a small sport sedan. The new car came with no release date, but it is said to be smaller than the very popular CTS model.

During the event, a number of planned changes were announced by General Motors, all of which are expected to take effect within the next 3 years. Some of those plans included doubling the amount of models Buick have, going from the current 3, up to 6. We’ll have to keep one eye open to see what cars are released first and what sort of effect they have on General Motors’ market share. Hopefully we’ll get some of these new models coming to the UK contract hire market. Currently, the only big American you can really lease is a Chrysler lease. Alternatively, another option to you would be to opt for cheap van leasing simply because they are almost as big as a Chevrolet.

The prices of Ford cars will be rising after the end of June by on average 4%. This is the third time since 2007 that they have rose their car prices. Ford rose their prices back in February by 4.7%, Ford then rose prices again in April by 3.75%.

Ford stated that it does sound strange to raise car prices during a recession, but they also said that they had no choice because of the weak pound, “there is no choice if we are to maintain a viable business”.

Ford said that at the end of 2007 the pound had been stable against the euro for 10 years at 1.43 euros, however, due to the recession, over the past 2 years, the pound has dropped to 1.16 euros.

Because Ford build their UK cars in Spain and Germany, Euro countries, they had no choice but to increase prices. Before these price rises, Ford had been absorbing the losses which end up around £3,500 for every vehicle sold, however, they cannot sustain this if they plan to keep a stable business, especially during the recession.

Not only are these price hikes a problem during the recession but they also have an affect on the governments car scrappage scheme because these price rises will take a huge chunk out of the money that would have been saved. With prices of a Ford Fiesta, Focus and Ka increasing by around £600. New car buyers won’t be benefitting as much when buying a new Ford under the car scrappage scheme.

Although this is all bad news for new car buyers, people choosing car leasing over buying won’t see the price rises straight away. Even if you are not currently on a Ford lease, but you are looking, the leasing companies won’t pass on the price rises until they buy new vehicles, which, during the recession, won’t happen straight away. So this is some good news for the leasing customers, not so much for new car buyers.