Archive for car sales

Car Sales In UK Show Encouraging Growth

Finally some encouraging news for everyone; particularly those looking for a new car!

According to latest statistics, there has been a steady rise in car sales in the United Kingdom, a very encouraging sign that things are starting to improve, particularly the ailing economy. The new couldn’t have come at a better time, when Hybrid cars are all the rage and more and more people are thinking about eco-friendly fuel efficient cars instead of the gas guzzling alternatives.

The Society of Motor Manufacturers and Traders (SMMT) who have been keeping a close eye at the UK’s auto industry reported that there were around 66,749 new registrations in the month of January. Compare that number with statics exactly one year ago, there is a substantial increase; 7.9% to be exact indicating a green signal for the growth of auto industry.

The United Kingdom was one of the top countries that was badly afflicted by the recession. The impact affected numerous industries, countless individuals, throughout the region. The car industry was one of them. The crisis left it almost paralysed, leaving the car industry struggling to keep up as the unemployment rate climbed. However, the latest statistics indicate that things are turning for better as the automotive industry is showing encouraging growth. This growth is by no means ordinary; Car sales have increased for the 12th successive month in January capping off a perfect 2013 for the automobile industry.

People are already questioning this amazing turn around but it’s not that hard to guess. Everything in interconnect but it all stems from two things; jobs and savings. People who have jobs are people who are earning money; enough of it to eventually start thinking about buying things over time. A car is by all means a substantial investment. It more than pays for itself as it becomes an integral component of a person’s day to day life. People buying cars is a sign they are confident enough to make that investment given the job market and stock market trading.

But that’s now all. There is more to the good news.

The rise has overwhelmed the manufacturers and they are trying to contribute in every way to give a boost to the industry. SMMT also reported that it took total sales of 210,039 for 2013, which is a whopping 10.3% increase and caps off a 4 year high for the industry. The car buying trend has picked up and people are putting themselves in the hot seat. Keep in mind that these numbers indicate both new cars and used cars. Used cars in particular showed double the growth compared to new models which makes sense. People are more inclined to play it safe and own a nice, reliable, efficient used car, then get a zero metre brand new vehicle. Moreover, hybrid cars cost less than non-hybrid models further making the case for people on a limited budget to get behind the wheel.

Even though January is usually a low volume month because people spend most of their money on Christmas and New Year but SMMT is predicting that this rise in car buying trend will continue well into this year as well. New car deals and great bargains are keeping the market afloat. It was observed that the compact and mini cars sold out much faster than other models.

Sadly there wasn’t good news to go around everywhere. While the UK did experience positive growth, things in the Europe as whole remain a cause of concern. The picture was not rosy for the European vehicle sales, as they slumped 8.2% in 2013 much to the dismay of businesses analysts and pundits.  SMMT reported that UK factories produced 1.46 million cars in 2012 alone and out of them 1.21 million were sent abroad. The consumer’s confidence is the most important thing to maintain and with the steady and positive growth in automotive industry. As far the United Kingdom is concerned, it looks like finally things are turning the other way and the UK auto industry has started moving forward defying all the obstacles.

One thing is for sure though. 2014 will be an incredibly important month for the auto industry. If this momentum from 2013 keeps up, it will positively impact other sectors as well and could very well make 2014 the decisive year not just for the United Kingdom but also for the European Region.

Car Sales Reached Records in November [Summary]

The auto industry was hit pretty hard by the recession, and today, more than 5 years after it started, it is still struggling to get out of it, but there are signs that it is on the road to a complete recovery. Car sales have been going strong over the past couple of months, with the strongest figures recorded in November, when many car makers reported that sales have exceeded even the most optimistic expectations. Enticing discounts and promotions over the holiday weekend, along with plenty of new models, as well as a good labor market, are among the most significant factors that made November an excellent month for almost all car makers.

This past month, car sales were so strong, that they led to a 16.5 million annualized selling rate, which is much higher than last year’s rate of 15.3 million, and the fastest rate since February 2007, when it got to 16.8 million. This was the best November in history, when it comes to monthly car sales in the U.S. Virtually all major manufacturers reported substantial gains in November, with General Motors and Chrysler leading the way.

GM saw a 14% increase compared to the same month last year, with 212,060 vehicles sold, resulting in the best November for the company in six years. Cadillac and Buick were its best-selling brands, with 16,172 and 15,072 units sold, respectively. Chrysler sold 16% more cars than last year’s November, or exactly 142,275 vehicles, with Jeep and Ram as the brands that were demanded the most. GM redesigned some of its more in-demand models, improving their efficiency and updating their exterior, which was a major factor that helped boost sales.

Although Ford had the best November in 9 years, it didn’t stop its market share from dropping 0.3 percent, unlike the other two major American car makers, whose market share improved significantly. Be that as it may, Ford’s sales were up, as well, with a 7% increase. They were able to sell 190,449 vehicles, with the majority of them being F-Series trucks, whose sales rose 16 percent. As far as projections for next year are concerned, Ford plans to build almost 15,000 less units than 2013, due to decreased demand.

Japanese giant Toyota also reported favorable November sales numbers, albeit not as good as the American Big Three. They saw a 10% increase, with the Avalon and RAV4 as the biggest gainers. In total, Toyota sold 178,044 vehicles, 19,477 of which were RAV4, which is a 56% improvement over November 2012. Their Japanese counterparts, Honda, on the other hand, were not as successful, and were one of the few companies that didn’t post such significant gains. Their sales were down 0.1% over last year’s November, which was their best November ever.

If you take into account that the average price for a new car grew when compared to the same period last year, these highly favorable sales numbers are a bit of surprise, but it actually makes a lot of sense when you add the generous incentives car makers offered for Black Friday, reduced unemployment rates, somewhat stable gas prices, and the fact that auto loans have become more affordable, with significantly lower interest rates.

Jordan Perch is an automotive fanatic and “safe sales” specialist. He is a regular contributor to DMV.com, a collaborative community designed to help US drivers.