Recession, what recession? It seems that car consumers, in the UK, are buying new cars as opposed to used. According to the BBC, there has been a massive rise in people buying new cars. In fact, new car sales are at their highest in ten years. This is surprising news considering that the economy has been in such a fragile state. There are a number of reasons why this may be happening. Finance options are becoming more consumer-friendly. The rise of technology in cars is proving to be popular too. With this in mind, are more people favouring new cars over used?
The Rise of Buying New
This week, there has been a report that new car purchases have risen by 5.6% year on year. What is more, there have been higher sales of cars in 2014, than in 2004. It seems that the new car industry is enjoying steady growth. More and more consumers are keen to get their hands on the latest model.
Despite the UK not being out of a recession, it seems that people are bucking the trend and want to buy a new car. With easier access to credit, and banks finally starting to lend again, more people can enjoy a new car than ever before.
The latest car technology, such as stability control and night vision modes, may be the cause of this rise. Consumers want a lot more bang for their buck. After all, why opt for second best if you can get your hands on a newer model? It seems that in Europe, as a whole, an increasing number of people are favouring new cars over older, used models.
Is There Still a Market For Used Cars?
Of course, despite this promising growth the automotive industry, there is a need for used cars. Dealerships such as carbase.biz have seen steady growth in the used car sector too. Again, this is due to credit and finance options being a lot more attractive than previous years. For many, they are keen to utilise the used car market to its full advantage.
The used car market is now subject to a lot of choices. The choice is so vast that consumers are in a great position to buy a car that they really want.
What is more, due to the sheer amount of choice on the market, there is now a price drive to compete with. Millions of used cars are now sold for a fraction of the cost. As more consumers look to upgrade from their previous vehicles, the used car market is offering a competitive edge. With prices falling and continuing to fall, now is a great time to buy a used car.
Cars are not being sold in the vast numbers that they were pre-recession. But, the car market is looking to be back where it was in 2015. With more choice and more disposable cash, more and more people are looking to upgrade their car. Whether this is via the new or used route, only time will tell.