Monday 26 June 2017

New test for buyers and sellers under long shadow of UK's Brexit

Big numbers plan to buy: report

Eddie Cunningham

Eddie Cunningham

A potentially testing year lies in prospect for buyer and seller in the wake of Brexit.

But there is a strong sense of optimism too with at least 147,000 people expected to buy a new car next year.

A couple of years back many would have viewed that figure as unattainable in such a short timespan. Now it's expected as a minimum.

Underlining the confidence in the economy - and consequently the purchase of so many new vehicles - are figures from a recent survey.

They show that nearly half (45pc) of those who took part in it, plan to buy a car in the next year.

Where they buy is another matter, of course.

And that is the big question for buyers and sellers.

Thousands are voting with their feet and buying used cars in the UK - some 64,000 have been registered so far in 2016 with a few thousand more expected before the end of the year.

We can expect to hear a lot about this over the coming months and, possibly, more fightbacks like those recently announced by Mercedes who have cut the price of all their new cars by 10pc for a time.

The core findings of the study, by carzone, were that 28pc of those surveyed intend to spend between €10,000/€20,000 on their next car; 25pc will use savings to buy but finance options are on the rise while the cost of car insurance is the main financial concern.

Significantly, 91pc say Brexit has not had an impact on their decision to buy a car next year.

Inside today (P2, 3) we have an outline of what new cars are just here, coming or expected over the next six to twelve months.

It is clear from a quick perusal that there has not been a breadth of choice like it before.

The craze for more crossovers is reflected at every turn. But not nearly as immediately obvious is the level of equipment and technology (safety, connectivity, driver assist etc) across the board - from small to large car.

It is something of a cliché to say it but buyers have not had such choice or variety before.

As well as that, of course, is the fact they haven't had as many ways to fund their new purchase - especially PCPs. Some marques are reporting huge increases in PCP deals.

As ever, consumers are urged to take care and be aware of all the conditions of their agreement and to take time to consider the downsides.

We have had some cases brought to our attention recently where people find themselves in some difficulty not so much with repayments but, for example, with substantially more mileage than their deal allows and they now face heavy additional expense.

So double check everything before enjoying the thrill of driving off in a sparkling new 171-reg.

Indo Motoring

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