Welcome to sell it to us Blog, new year, and new thoughts for the coming year and one or two from 2016. Now it would be far too easy to just start with who the hell does Donald Trump think he is? Playing god with the world and letting us know his crazy thoughts in a 140 characters.
The UK is about to enter in to Brexit negotiations and quite frankly I don’t think anyone really feels that will end well! But we decided we were coming out, so we are certain to reap what we have sown.
2016 seen some of the highest new car sales ever recorded at 2.69 million cars sold, but yet again the mainstream news desks just lapped up the fodder that the likes of the SMMT pumped out.
Did anyone stop to count the pre-registrations made by dealers?
No I didn’t think so! Manufacturers have the same problem they have always had, they produce far more cars than they can sell. previously they used car rental companies to dispose of the over capacity, now they incentify dealers by offering huge discounts. And they call them pre registered.
If you believe the hype, the majority of these extra sales have come from cheap leasing deals, like this is something new! In the USA they have been doing this type of selling for over 25 years.
They call it “customer for life” sounds great doesn’t it? Every three years you get a new car, which is a good thing, but you never build up an equity in the car!
The only people making money out of this is the dealers, the manufacturers and the treasury from the VAT and TAX they are pulling in. And where do those three year old cars go I hear you ask?
The majority are sold through leasing and manufacturers closed auctions to the motor trade. Which is perfectly normal practice. Now you remember I mentioned this was a practice that started in the USA ? You only need to take a look at their motor industry to see this is another
disaster waiting to happen.
What will happen when all those people who use to buy a used car/nearly new car start just taking lease deals? And then huge amounts of three year old cars are coming on to the market with no one to buy them?
I will tell you, the prices of used cars will go through the floor! the manufacturer will not be able to sustain the losses and will have to be bailed out by the like of you and me, sound familiar? And leasing deals will no longer be available.