While Others Continue to Struggle, UK Car Sales Explode
Reports have indicated that across the world car sales numbers are dropping every month or remaining steady at low levels that are making history and causing severe financial problems for some car makers. But these reports are not focused on the UK where car sales have continued to rise despite the poor economy that is still struggling to recover and may continue to rise over the coming months.
The market may be booming in the UK car industry due to increasing incentives that drive buyers onto car lots and out of the lot with a new vehicle. Some of the most recent offers made to UK car buyers have included: no deposit, two years free maintenance services, and zero-cost financing. To name the UK car industry a buyer’s market would be to downplay what is actually occurring in the marketplace. Many automotive industry employees have indicated that this aggressive push is like nothing the UK car industry has ever seen before. These same tactics are used in the United States and while they work for some businesses that have been in business for decades, they do not always work for the majority of companies. Many of the deals that have been posted in garages in the United Kingdom have seemed too good to be true, but many users have become accustomed to their excellent vehicles, along with the change in their rate and the services provided to them as a result of the changing economy and the industry’s determination to stay alive and not lay off any employees as has been common in other countries.
The United Kingdom has also seen not only unprecedented sales and incentives but also unbelievable amounts of groups. According to recent reports more than 15 straight months have passed and car sales have continued to rise in each and every month of more than the past year. High levels of customer service and excellent incentive programs have likely contributed to the increasing number of purchases. Reports from the automotive trade body in the United Kingdom indicate that people in the UK who use PPI are able to use money that is refunded to them to put a down payment on a new car. The suspected use of the PPI’s £2,000-£3,000 refund that is typical for many individuals, will go directly to the purchase of a new car.
Another reported factor that is keeping the UK car industry up at the top of the list. Financing costs are at all time lows in the United Kingdom making it easy for people to get down on their knees and thank the mechanic for a job well. Paired together the interest rates and the incentives typically make it much easier for sales people on a car lot to sell a vehicle. While the UK car industry is still behind where it was before the recession, things are looking up.
The end of the recession, which may be bad for car lots, is up to the buyers of cars to decide.
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