| Buying a new car is likely to be one of the biggest | | | | marketplace could be seen as an attractive proposition |
| purchases you make other than buying a house, | | | | to those who are not as affected by the credit crunch |
| therefore when buying a car it is important to take | | | | or economic downturn as some others. |
| many issues into consideration. | | | | “A potential slowdown in the economy, cost of |
| The current economic climate has left consumers | | | | fuel and road charging are some of the factors that |
| struggling with cash flow. Therefore it is important for | | | | will make it difficult for this market to sustain growth. |
| consumers to make sure they consider their own | | | | Furthermore competition is likely to grow strong, as |
| situation in terms of being able to afford certain goods. | | | | people become savvier and aware of prices through |
| Cars, being a large cost yet important in most people | | | | searching on the web” (Mintel 2008). |
| lives, are available to purchase either by a lump sum | | | | Buying a car on finance is therefore an attractive |
| payment or available on finance. | | | | option for some consumers, who are able to see |
| “while registrations of new cars for fleet and | | | | through the now acclaimed recession. If the payments |
| small business users are both expected to decline, | | | | for a car are split to small monthly manageable |
| Mintel believes that the downturn will have most impact | | | | payments rather than one large lump sum then it is |
| upon sales to private individuals, which are expected to | | | | more feasible to sustain a good cash flow for most |
| drop below 1 millions units for 2008” (Mintel | | | | consumers through these harder times. |
| 2008). | | | | The economic downturn is has a large effect on the |
| This market downturn has possible implications of | | | | lending market. Due to current banking conditions, |
| increasing prices from dealers who need to maximise | | | | banks are less willing to lend finance to consumers. |
| on each sale. The future car market is not set to | | | | The implications of which for buying a car or sourcing |
| recover from this for a few years yet. With no | | | | a car on finance for consumers means it will be harder |
| growth, and inflation increasing each year, the car | | | | for them to obtain finance without applying for a |
| market could suffer. | | | | secured loan and or those with solid credit history. |
| “Mintel forecasts difficult times ahead for the | | | | However, it is still possible to get the finance for buying |
| value of the total car market, with growth remaining | | | | a car for those with poor credit as there are some |
| stagnant. From 2008-2013 we expect the market to | | | | banks, more stable than others, that are able to |
| grow and decline by one percent. Without the effects | | | | capitalise on the poor market environment. |
| of inflation on motoring this equates to a drop of | | | | Consumers seem to be less interested in the notion to |
| 10%” (Mintel 2008). | | | | buy a new car. New car sales a set to decrease by |
| There are some who believe that buying a car is | | | | 17% but buying used cars is set to rise to 14%. |
| something that consumers should consider doing whilst | | | | Used cars that depreciate less have become a more |
| the country is in this downturn as dealers will become | | | | attractive option when looking to buy a car than buying |
| more competitive to sustain sales figures. The | | | | a new car. |