2009 has not only been a tough time for the banking industry – which as we all acknowledge has seen galore ups and downs. . . It is having also been rather turbulent for the automotive sector too!
The scrappage system has made both the new and applied car marketplace have galore ups and downs. First and foremost it is having boosted new car sales – which was its main aim, alongside reducing the amount of old cars on the road, but it also sent the applied car market into chaos too.
The success of the scrappage system has meant that applied car dealers have had a terrific 2009. The fact that thousands of motorists sent their applied cars to be scrapped meant that there was a serious shortage of applied cars available. . . So the ones which were available were in high demand.
This was terrific news for applied car dealers as applied car prices really rose by 30% – a record figure. Bartering over the price of a applied car was almost unheard of as dealers remained adamant that they would get the asking price they wanted. The solitary problem for dealers was really being capable to keep their forecourts full of cars.
It is only now in november that automotive experts have advised that the price of applied cars is starting to come back to normal in what they call the ‘correction in prices’.
The scrappage system will start to run out of funds early next year which are going to have yet another effect on the automotive industry. It’s possible that new car sales will come down as there won’t be as large an incentive to car buyers. This will also affect on the applied car market as more applied cars will become available which will mean that prices should see a slight decrease.
It’s not only the scrappage system that has caused applied car prices to increase, it’s also the recession. Persons who may have antecedently looked to purchase a brand new car may turn to the applied car market to save a number of thousand – creating a higher demand!
Applied car dealers will be hoping for a recession every year!

