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Dealers slash prices as sales slump

Official figures show that car buyers have deserted showrooms as Britain's second-biggest car sales month was hit by the economic downturn.

Statistics from the Society of Motor Manufacturers and Traders (SMMT) show just 330,295 cars were sold in September. That's down 21.2 per cent, or 89,000 cars, on September 2007 and it's the fifth consecutive month of falling sales.

The plate change in September is usually the second-strongest month of the year and can account for up to a fifth of the year's total. However, with the downturn in the economy and finance not being so freely available, sales have collapsed and the car market faces the toughest time since 1991.

Paul Everitt, SMMT chief executive, said: "New car registrations have fallen for the fifth consecutive month and represent the most difficult economic conditions the industry has faced in 17 years. The chancellor's pre-budget report should set out a package of measures to boost demand for new fuel-efficient cars and scrap plans for unfair increases in car tax."

Dealers slash prices to combat downturn

Those that will benefit from the slump are the buyers looking for a new car in the next four months. As dealers slash prices to get people into showrooms, those with money in their pockets could really cash-in. Thousands of pounds have been slashed from the list prices of many family cars by dealers. In the last month Parker's has seen £4,000 off the yet-to-be-launched Vauxhall Insignia, £1500 off the new Ford Fiesta and £12,000 off a large 4x4.

Among the dealers suffering the most (and therefore most likely to be offering the best deals) are Alfa Romeo, Land Rover, Lexus, Renault, Saab and Subaru. However, those looking to trade-in a Land Rover, or any other large petrol-engine car, may find that it's not possible to do so. Many dealers have been turning away these types of car and private sales remain slow.

The best selling cars in September

 
1Vauxhall Corsa15,647
2Ford Fiesta13,316
3Vauxhall Astra12,965
4Ford Focus12,683
5Volkswagen Golf10,048

 

The worst hit manufacturers in September

1Chrysler-68.9%
2Proton-65.9%
3Cadillac-61.6%
4Jeep-61.0%
5SsangYong-56.5%

 

Have your say

Have you changed your car buying plans because of the downturn?

Post a comment and tell us what you think about this article.

Added: 17 May 2009 19:40

Are the people running this site all young people, with fast cars, all the advertised cars are too fast for me, if I scrap my car, I now want one a bit smaller and more MILES PER GALLON after all if you do your homework, we are nearly all silver surfers , and slowing down now due to age, so please do a list of MILES PER GALLON CARS
simon, BLACKPOOL
 

Added: 12 May 2009 00:19

You are having a laugh, no wonder the car industry is shot to bits. Whos going to pay over £10,000 for a new car now ( Family car range ) ? only for it to be worth £5000 in three years time and then £2000 after a further three.

Do the maths, people are just fed up of losing money on cars.

Why not just give us £2000 for our ten yearold cars and then watch the second hand market demand for old cars go through the roof !
Allan Williams, Newport
 

Added: 28 January 2009 14:52

The Nissan Dealer in Grantham have brand new Muranos for 16295! just over half price!
Iain , Grantham
 
Have Your Say!
Added: 28 January 2009 14:51
The Nissan Dealer in Grantham have brand new Muranos for 16295! just over half price!
Iain , Grantham

Have Your Say!
Added: 12 January 2009 17:41
The government should regulate the dealers hahahaha. Have you not heard of supply and demand!? You have bought a car at the most expensive time and the bottom has now dropped out of the market - unlucky.

I suppose they have stepped in to regulate the banks, so you can keep your fingers crossed but I wouldnt hold out any hope!
Ian , Oxford

Have Your Say!
Added: 12 January 2009 11:11
The low p/x values being mentioned are nothing out of the ordinary - All the cars mentioned will depreciate quite a bit, especially if bought from a dealer. The current economic climate will see dealers running down stock slightly, largely affecting the p/x values (main dealers will be getting lower offers from the local non franchised dealers your car is likely to go to). This will of course affect the auction market where a lot of the p/x's will end up.
Convertible + winter = << value.
Darren, Hythe

Have Your Say!
Added: 15 November 2008 10:15
the fact that the market is in a bad state has only made me "hungrier" for deals to buy a new car or a great saving on buying a used car. however, to be honest, I am yet to discover any great attraction really - which only means dealers are not doing enough to attrach customers like me.
Imran, Cambridge

Have Your Say!
Added: 13 November 2008 19:29
We have been trying to part ex our BMW 325 sport Convertible looking for something like an Astra 3 door sport diesel. The "big" dealers are offering silly prices for our car really to the point of us being insulted we would be looking at a £7k loss in 18 months they must think we are stupid or desparate, they deserve not to be doing business at that, ALL dealers should be regulated by the government to give propper p/ex prices to enable people to trade and stop being RIPPED off !
Lisa Simpson, ROTHERHAM

Have Your Say!
Added: 31 October 2008 21:57
Don't take a lousy price for you car. Do what I did, I wanted to trade in my 4x4 for a 'greener' car, I was offered a pathetic price for my car, so I'm keeping it. Now I've saved myself thousands of pounds! I can even afford the new taxes now! great!
Phil, preston

Have Your Say!
Added: 10 October 2008 21:52
certainly some bargains out there to be had! Had to take a very low offer for my 1.6 petrol coupe. Lost £4000 in 15 months ouch!
jill parkinson, morecambe