First Quarter Sales are in and its been a great first three months for new car sales with thousands of units sold in the UK… Or has it?
The truth has come out that SOME dealers are being forced by Manufactureres to self register in order to hit lucrative sales target, what appears to be happening at many franchises is the Manufactureres are forcing dealers to sell used cars at a loss or cost basis by danglilng an large carrot for those who can sell hundreds of units. In order to hit these targets they are forced to sell out of there own regions via the interent or press targeting there local competiition with massivly reduced prices. The then sell at these low prices for three months solid making a loss in there accounts for the first three months of trading. Then in the final month they absolutely have to hit there target sales figure or financial ruin approaches. Those who dont of which the majority didnt this year! Are then forced to buy there own stock and report it as a sale, ‘Self Registering’, this is a very very dangerous game for dealers to play. Those with tight or restrictive bank loans to finance there business could easily come unstuck, similarly larger groups will have to buy more cars and loan much larger amounts to self register.
Vauxhall under pressure.
Either way the current climate means if you want a motor now is the time to buy, if you made the mistake of purchasing in March then you may have missed out on some fantastic bargins as dealers now have large quantities of interest bearing and rapidly depreciating brand new cars that they have to get rid of and FAST before the cycle starts again for the next target in June.
For the dealers themselves this is bad bad bad news, its the equivelant of eating like and elephant and s@*iting like a bird, and that can not go on for long.
Ford Pre Reg Cars are a bargain!
Sales are up and Consumer confidence is through the floor especialy on cars and anything that requires finance with the Credit Cruch hotting up, this bizzare senario shows that Car sales are the only market in the UK to have gone up in Sales!
Essentially Manufacturers are forcing the market so consumers beware if this situation continues the dealer you buy from today, may not be there tomorrow!