The state of the Car Market
Let's face it, cars are cheap nowadays!
Back in the old days a car would start to break down
regularly after it had covered about 30,000 miles and by the time it was five
years old the rust would start to show through the bodywork. After 10 years
the vast majority of cars were fit only for the scrapheap but engineering
standards and metal treatments have improved dramatically over the last couple
of decades and as a result cars are not deteriorating at anything like the
speed they did in the days of so-called planned obsolescence; so we are
keeping them longer. This has not pleased the car manufacturers which have
found themselves, even before the credit crunch, having to store expensive
vehicles en masse in huge parking lots near to docks and rented disused
airfields. Result: prices have declined to the level where most car companies
worldwide are losing money or at least failing to make sufficient profit to
keep them viable in the long term.
Try here for an excellent choice of UK
young driver
insurance
Where does this leave the car buyer? For a start, cars
have never been so affordable as they are now and they have never represented
such excellent value for money. Most vehicles that are bought today are still
likely to be giving an excellent service 10 years hence so unless we are the
type of people who just enjoy the smell of new leather seats there is little
possibility that we will need to buy another vehicle for a long, long time to
come! Indeed, second-hand prices are so low compared to the price of new cars
that it is not really a good economical proposition to sell a used car in
order to buy a new one, and trade-in values have fallen dramatically. The
future for the car industry as a whole looks extremely grim; the future for
the car buying public looks very rosy indeed for the foreseeable future.
You can get an excellent deal here for
direct line car insurance
|