Car Sales – Good News, Bad News
Despite widespread fears that the UK is entering an economic recession, there are grounds for cautious optimism about sales of new and used cars in 2009. According to EurotaxGlass’s, publisher of Glass’s Guide, the used car market is likely to be the first to recover from today’s lows, followed by a steady – albeit modest – upturn in retail sales of new cars. However, fleet registrations are expected to remain lacklustre, at least until late next year.
“In the short term, conditions will remain difficult for car dealers, reinforced by the usual seasonal decline in demand that accompanies the latter months of the year,” explains Adrian Rushmore, Managing Editor at EurotaxGlass’s. ” However, we believe the swift and painful downturn we saw in the summer months of 2008 was probably a one-off event. The arrival of the ‘09’-plate next March will clearly be an acid test for both new and used sales, and analysis of the current market indicators suggests there are reasons for cautious optimism.