In the last months of 2009, the UK economy limped out of a recession that lasted for five consecutive quarters. We say limped because the gross domestic product (GDP) grew by an anaemic 0.1 per cent, which was less than expected. However, there were a few positive signs that have convinced a few economists that the economy is on the slow road to recovery.
Probably the most encouraging sign was the increase in new cars sales. As you may know, car sales are a key indicator of consumer confidence and they often signal future economic growth. Of course, it is much too early to come to any conclusions or even to offer an educated guess as to the future of the economy. But absolute certainty is for scientists and sometimes consumers must take a risk.
Why buy now? According to recent reports, cars for sale in the UK have increased for the seventh straight month in a row. The latest uptick means that car sales have risen by more than thirty per cent from last year’s lows. While it is impossible to say if this trend will continue, what we do know is that car values and prices have steadily increased along with sales.
But if sales do continue to increase, we would expect to see prices move in the same direction. Of course, that is not the only reason people should seriously consider buying a new car now. If you have been shopping for a new car over the past few months, then you know that dealerships and manufacturers alike are offering special deals and incentives to encourage people to buy. Well, from what we have seen with increased sales, these deals seem to be working.
What does this mean for consumers? Not surprisingly, when sales increase as a result of an improved economy or consumer needs, dealerships and car makers almost always discontinue their special sales programmes and promotions. So, not only will buyers pay more for vehicles due to increased sales, but they also won’t be eligible for special deals.
