| A car is the second largest purchase that many | | | | to contract yet again. |
| families make. Most people cannot afford to make a | | | | I am hearing problems from second hand car |
| payment for a new or second hand car out of cash | | | | dealerships that they simply can't move older cars. If |
| and credit will be required. So what do you do then if | | | | you had a chance to purchase a second hand car for |
| your line of credit has dried up. | | | | £10,000, or a new car for the same amount, |
| This is a problem being faced by very many car | | | | with a five year warranty, what would you do? |
| dealers at the moment. Industry figures reveal that | | | | This means that there are a number of dealers in the |
| new car sales in the UK have fallen by 15.7% in June | | | | market who have stock that they have tied up, but |
| this year compared to June last. In May fall was 25% | | | | which they can't liquidate. |
| year on year. | | | | These businesses have rents to pay on the units that |
| In the month of June some 176,000 units were sold | | | | they keep. They have wages to pay, and possibly |
| across the UK. Many of these will have been sold to | | | | finance charges for borrowings they have which they |
| industry, with the private buyer sector really struggling | | | | may have used to purchase stock. |
| to purchase due to a lack of credit around for them to | | | | If you run a business such as this, you may be needing |
| utilise. | | | | to take stock of your current situation. If you are |
| The Government scrappage scheme which came into | | | | struggling it may be possible to take steps to, extricate |
| effect on 18th May has had some effect with nearly | | | | yourself from debt, and re-start in a debt free |
| 30,000 vehicles over 10 years old being cashed info | | | | company. |
| £2,000 against the price of a new car. At this | | | | A professional advisor, will be able to offer advice on |
| rate the scheme which was due to last a year will | | | | something called a pre-pack administration, or liquidation. |
| have exhausted its funds by October. The | | | | This will enable the debt to be left behind and the |
| Government has said it will not be extended. | | | | stock and lease and employees to be transferred to a |
| The problem may then re-occur that the market starts | | | | new company. |