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Car Dealers

The hard and simple fact is that there are far too many cars in the western world. Part of the problem is that the credit free-for-all that we used to 'enjoy' led to an awful lot of people taking out loans to buy new cars; but the other cause is the sheer excellent quality of the new car of today. Manufacturing standards generally have improved dramatically worldwide over the last decade or so with the result that car bodies are no longer rusting away so quickly and the mechanical parts are surviving for far longer than they used to. Cars are now at last being a lot longer than they did in decades past so we just do not need to change them as often.

The result is oversupply. Too many cars chasing too few buyers has led to price reductions, which have often encouraged people to buy more vehicles and whereas most families, if they had any car at all, only had one but now it is not uncommon to see two or three cars parked on a drive of a two person family. One result of this is that these cars are covering a lower mileage than hitherto, and so they are lasting longer!

We have now reached a watershed. There are too many car manufacturers in the world producing too many vehicles which they cannot sell and which are likely to end up stored by a dockside or on a disused airfield where they will simply deteriorate. Many car firms are destined to go bust sooner or later, in many cases despite the massive cash injections that governments are pumping into them. This means of course that in the short term there will be massive discounting on many new cars as their manufacturers fight to survive economically. In the longer term some reduction in manufacturing capacity is inevitable but it is also likely that cutthroat competition will continue to be a fact of life for both carmakers and dealers. It is a buyers' market out there; don't be afraid of asking for, and expecting, a substantial discount. New cars

Have never been such good quality, or some reasonably priced in real terms, as they are today and the second hand market has followed suit with a lots of excellent bargains on offer.

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