- Rising new vehicle prices just too much
- Used cars are the new new cars, now
- Forget the gadgets, go for simple quality
INDUSTRY EXPERTS in Britain believe 2017 will see vehicle buyers flocking towards used instead of forking out for a new one. Indeed, one UK expert says it is already happening there.
The same signs exist in SA as car prices/repayments soar beyond the incomes of most middle-class families, already being racked by rising food prices and higher municipal taxation (you know, the taxation that masquerades under the less-offensive word ‘rates’…
The conditions, experts in the UK says, are better than ever for a used-car bonanza as pressure on the new-car market start to bite.
Dealers in the UK now want used stock so much that the rate of trade purchases TREBLED in the first 12 working days of January 2017 (people buying to pretend their purchases are a year younger) compared with the whole of December.
INFLATION, ROAD TAX, UP
That’s according to the website wizzle.co.uk which helps people to sell their vehicles direct to dealers who are filling their sales forecourts with used vehicles quicker than ever after experts predicted a reduction in new vehicle sales through 2017.
Higher inflation and changes in UK road tax are, it’s reported, set to make new vehicle deals look less attractive, despite new registrations hitting record highs in recent years – growth, it’s claimed, is now stalling.
However, people and families still need a vehicle: overall demand is undiminished but new-vehicle prices have just climbed to high. Perhaps, The Corner suggests, because buyers want to “keep up with the Joneses” with vehicle accessories, audio systems and internet connections.
We’d rather buy a quality machine with a good engine and transmission, a long guarantee (think Hyundai’s SEVEN YEARS!) and to heck with the fancy bits. Or, of course, a late-model used…
Sébastien Duval founded Wizzle to connect dealers with people wishing to sell their car direct to the trade. He believes signs of a used-vehicle boom are already strong.
“We saw a 300% increase in sales for the first two weeks of January over December (not really a fair comparison – nobody buys a new car at year end! – Ed) and dealers now can’t seem to get enough “pre-owned”, “one doting owner”, “elderly lady driver” cars.
NEW VEHICLE FUTURE POOR
“There’s no obvious pattern to the type of cars they want in terms of price or even age – they’re stocking up on everything. We think dealers are seeing used sales as a good hedge against an expected slowdown in new vehicle sales.
“The (UK) Society of Motor Manufacturers and Traders has already predicted that new sales could be down by five or six percent through 2017 so dealers are looking at every possible avenue.
“There is now a better choice of second-hand cars than ever before, thanks to the multitude of new models launched over the past few years. Availability at every age and price has also improved since ownership periods have shortened, which means many more high-quality used cars available.”
And his final words: “It’s good news for private sellers.”