Car Price Rises? - Could be
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Today Vauxhall gave advance warning of impending price rises and others are sure to follow as they all look for ways to make up for the fallingprofits. Whilst the UK forecasted registrations for 2009 is still a respectable 1.9 million cars that is some way of the recent years of 2.2 - 2.3million units. The only way to bridge the drop in profits is to sell more cars or to raise prices. The Vauxhall and Chevrolet increases are significant and effect key models for both the retail customer and traditional company car drivers. What is particularly bold is that it also includes the just released Insignia. Dealers will no doubt continue to discount heavily as they compete with each other, but they do not have enough margin to cover these increases. The only question that remains is which manufacturer will be thenext to follow with similar increases? It may be that if you're in the market for a new car then best get your order in today, but remember to ask for a March delivery and get the new registration plate because used car prices do not look ready to rise just yet • Agila models increase by an average of £280 • Matiz models increase by an average of £212 Price increases are effective from 3rd February 2009 |
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The turmoils faced by the Car manufacturers around the globe have been well documented for 2008, but that was last year! With a weak exchange rate and falling volumes car makers have to make up the profit deficit, and we reckon it will be the new car buyer picking up the tab.
