Now is not a good time to be in the manufacturing industry in the UK, especially if you’re manufacturing something like cars that whilst necessarily used by many people can be picked up extremely cheaply second hand. Unlike, for instance, housing, which is suffering exactly the same problem in its’ own manufacturing industry. Lack of bricks and mortar? You bet!
Anyway, it will come as a great sadness to us all to hear that in these economically unstable times, Tata Motors has made the decision to cut 200 of the workforce across Birmingham, Solihull and Merseyside. Whilst Jaguar Land Rover employs around 15,000 people in the UK, these 200 being ‘let go’ are expected to be in the form of voluntary redundancies.
Unfortunately, the credit crunch has seen new car sales drop by a fifth compared to the same time period last year, putting many dealers (and forecourts) on extremely nervous footing. Of course, what affects the top of the market also affects the bottom – if you’re rich and can’t get a loan for your next £40,000 Jag, what’s to say Joe Bloggs down the road can get the £6,999 he needs for his new Corsa?
Of course, the inverse of this is that there are some good deals to be had, if you know where to look that is. You can’t just go waltzing into any old (or new) showroom and expect to have your arm bitten off for a sale simply because you have some cash to spend when the majority don’t. If anything, the dealerships are in need of more revenue, not less.
However, hopping onto the previous point let me just highlight a deal I have found:
Perrys are currently offering to take your old car as full deposit, you don’t pay until 2009 and you get a 2 year servicing plan completely free. If that doesn’t sound good, then I don’t know what does. Here’s a car I’ve picked out for you too:
I found a used Subaru Impreza WRX on a 56 (07) plate, with only 9,000 miles on the clock. Surely, surely a bargain at only £11395! Go buy it now before I do.
On a serious note, these are hard times for us all and we certainly hope that the market picks up soon.
I agree that times are hard for the manufacturers, but as you righty pointed out there are some great offers to take advantage of. In the car leasing industry, we are seeing some real bargains to be had. I have access to a Honda Type R on contract hire for £200 per month – that is simply a stunning price.
Hi Robin,
That’s certainly a good price – what’s the minimum lease term on that?
Of course, it really is horses for courses but now we’re officially in a recession then things can only get better as the new and used market stagnates. I don’t have much knowledge of the leasing industry but perhaps it may pick up in such unstable times as people choose to rent rather than buy?
Hi Mr Butterscotch
The minimum contract hire agreement is 24 months. Since my post we have seen a lot of maunfacturers contacting us to offer extra discounts. In many ways it is a good time for a bargain. As you say vehicle leasing may well become more popular in todays economic climate. Opting for a vehicle lease with no risk as opposed to ownership of a depreciating asset.