The Automotive industry went through one of its worst times last year, 2009 and 2010 were the peak of the recession but due to a Government backed new car scheme car dealers were still making money. The Scrappage scheme came to an end in 2010 which meant there were no incentives for new car sales in 2011.
Lack of new car sales led to a shortage in used car stock, higher values and a shortage of stock meant used cars were expensive or there was a shortage of demand " a vicious cycle. Car dealers and manufacturers used special offers, extended warranties and stock availability to get customers through the door last year.
Many dealers are predicting that 2012 will be a better year for used car sales " a survey carried out by Experian has instilled this confidence amongst dealers. According to the survey of 128 dealers, 62% predicted that their used car sales activities would grow in 2012.
Along with used car sales it is predicted that car servicing in London will also improve. 55% of those surveyed said they will be investing and expecting their Aftersales revenue to increase. 2012 will be a testing year, it won't be like the happy days of the late 90s but with dealer optimism on the up it may turn out to be a half decent year.
The last time we so a down turn like this in the automotive market was in 1992, 1993 was the turning point and marked an impressive recovery for the industry. Alistair Scullion, Experian's Automotive business in the UK and Ireland managing director, said, "Optimism around used car sales and Aftersales activities is encouraging. It is clear that dealerships recognise that there are growth opportunities for those of them that can react quickly to changing market dynamics, while reaching customers with the right offer and fostering customer loyalty to keep them coming back to the dealership."
Author Resource:-
chaussure requinnike tn Joanna Small - Automotive Journalist and Enthusiast
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