By on 2016-08-08 -
Brexit woes ‘good
for car buyers'
THE latest set of new car registration figures from the Society of Motor Manufacturers and Traders show signs of the new car market slowing down.
July registration volume was just 0.1 per cent ahead of the same period in 2015 leaving the 2016 new car market 2.8 per cent ahead of 2015 year-to-date.
This is partly due to the usual summer slow- down but predominantly because of a drop in consumer confidence following the Brexit vote in June's referendum which took many by surprise.
The constant pontification over the health of both the UK and Eurozone economies and confusion caused by the change in Prime Minister and cabinet has left money markets and the economy seemingly delicate at best.
The base rate reduction by the Bank of England has also been cause for concern suggesting that matters may be worse than many appreciate.
However, the fact is that this could be good news for the private buyer looking to find a new car in September.
With lending rates low and car manufacturers keen to keep sales levels high for the remainder of 2016, there will be plenty of opportunity to find reasonably priced cars on the dealer's forecourt.
Not only will there be fantastic PCP deals but there will also be a large choice of pre-registered cars to choose from.
It is important to remember that if PCP is the route to ownership chosen, then accurate mileage estimation is critical to avoid costly end of term penalties.
Equally buyers will have the ability to be more creative in their choice of colour and specification as resale will in most cases not be a consideration when the car comes to the end of the contract period.
For those looking to use more traditional finance options or indeed opting for outright purchase, seek to be careful on model selection and avoid overloading the car with costly options that will not have held their value come the time to sell it on or part exchange it for a new car.
Also be wary of lifestyle paint colours that are so unique it restricts the onward buyer base.
It is also worth considering propulsion type. Whilst diesels have been the subject of great discussion since the Volkswagen ‘dieselgate' debacle last year, and often wrongly criticised by those who have not checked their facts, diesel is still a good option worthy of consideration, particularly for larger cars and those people that cover higher mileages.
According to GlassForecast a two year old diesel Ford Focus 1.5 TDCi Zetec 5dr manual will be worth 45.2 per cent of its original cost new whereas the petrol Ford Focus 1.0T Eco Zetec 5dr manual will be worth 46 per cent of its original cost new.
Most importantly do not rule out hybrid options and seek to assess the value of fully electric cars that these days have far better battery packs often giving ample range for everyday use.
Whatever the final decision, September could be a superb time to buy the new car of your dreams.
Choose from one or more of the options to find the car for you.
Based on your search find the dealership
nearest to you.