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It seems that 2009 is almost upon us so let’s reflect on the past twelve months for the automotive industry. Well where does one begin?! Going back to January, it seemed that everything was normal; people were buying cars, new models were being introduced by all of the manufacturers and there was a general “good feel” in and around the marketplace. However, like the midnight sky on view during a dark horror movie, lightening struck and it struck hard and fast. By the time April came about, between the banks and the media, a non visible frenzy was created, which saw the purse strings of many be tightened to the point that nobody was buying cars. The new cars section of the industry was hit most with many people just unable to afford a brand new vehicle. The main reason for this was due to the fact that the banks and financial institutes were not offering buyers the finances that were normally used to buy a vehicle. But it wasn’t just the new car market that suffered. Used car sales were also hit albeit at a lower rate. As the year progresses, many people lost their jobs and were made redundant. New production was halted and many of the main manufacturers were left in turmoil. The only shade of light was that there was more business for the repair centres, which was a result of older cars needing either new parts and / or a service (with people not buying cars, it meant that they were keeping hold of their vehicles for longer). This was the case for the rest of the year and so the industry has seen some major changes. The outlook is that things will be similar, if not worse during 2009. So in summary, it has been an extremely difficult 8 months out of the 12 for the automotive industry.

If you were to listen to the news and read the local press you might be under the impression that the car industry is experiencing hard times due to the downturn in fortunes of the financial climate etc. However, just how much of this is reality and is any of it just pure hype? The truth is it is a little bit of both. Many smaller vehicle dealers have experienced difficulties maintaining the upkeep of their dealerships due to a retraction in the number of cars sold during the second half of 2008. Therefore, they have felt the pinch and have been forced to abandon their businesses – especially with the banks not offering any help in the form of a financial loan. So, in that respect, yes, there have definitely been companies that have felt the effect of the market and ultimately the smaller ones have been hit the most. The bigger car dealers, although suffering from a low number of sales still seem to be operating at decent enough levels and if you speak to the people at Audi for example, they will tell you that sales are indeed up on 2007, which in itself offers another story altogether. I suppose some of this so called car credit crunch comes about when you actually let it affect you. Yes the banks are not lending finances to every Tom, Dick and Harry anymore but if you have a foundation in place along with a steady monthly income then things shouldn’t be affecting you too much. If anything, with the cost of petrol and fuel decreasing – it should benefit! Unfortunately though those in the automotive industry – especially the used car industry have certainly had their purse strings tightened and there is less and less car advertising campaigns being promoted nowadays. From a personal point of view I am going to wait until the second quarter of 2008 before I commit to any new cars or make any upgrades to my current vehicle.

There’s just something about Audi that impresses me. My last three cars have all been from this wonderful German manufacturer and I cannot see the time where I think that I will change to a different supplier. Not only are the cars themselves of the upmost quality but I always find that the customer service provided is second to none. At first I thought that this just my local dealer but having travelled to various different ones throughout the country, they are German-like at each branch. Also, they have one of the widest ranges of used cars that I have ever seen and that can be attributed to the fact that they are constantly releasing new models of cars and because of the quality that they bring, people want to buy. This is not only providing constant new stock in a competitive marketplace but also making Audi an awful lot of money as the people trading in their second hand cars are also Audi models. This is why whenever I look around the used cars section of the dealership, many of the cars on show are as good as new and look as though they have never even been driven. Take yesterday for example, I visited my local Audi dealership to find many 2008 vehicle registrations for sale even though the first batch of these was only released in March 2008. Therefore, the maximum age they could be is 8 months old yet the sale price was much lower than if bought brand new. It is now wonder then as to why there were so many people lurking around the used car section and why the salesmen were all busy upon my request for more information about a particular vehicle. It just goes to show then that with a decent product and an excellent service how far companies can go. Add to that an aggressive advertising campaign and the possibilities are endless.

One particular industry that has been on the demise due to the economy in America is the automotive industry. This has therefore meant that many people have had to think twice about buying a new vehicle. However, one person’s downfall is another person’s gain and so it is the used, second hand cars industry that has seen a small but positive increase in sales numbers. It seems that many families can no longer afford to purchase new cars and are instead being forced to either downsize or cut the costs of the normal motor spend just so that they can take part in an ‘upgrade’. The fact is that with Wall Street in the US operating at huge losses, more and more buyers are turning to used cars as a way of saving their dollars. In fact, some used dealers are inundated with business and are making more money now than they ever have done before. So just why are people turning to cars that is second hand then? Well the answer to that question is simple; price. The price is a lot less strenuous on the wallet for used cars as oppose to new cars. Therefore, people prefer to buy used and then maybe use the money that they would have spent on a new car for something else or as a way of saving. As we know many of the car manufacturers are reporting decreased profits and are offloading staff as a way of making up the loss generated. However, again, the downfall of one section has meant that the maintenance and repairs teams of such companies have seen an increase in activity. This can be attributed to the fact that more and more used cars are on the road and do not carry the same warranties as a new vehicle would. Also, it seems that people are keeping their cars longer as many cannot afford an upgrade. So, from this, the longer they keep the car, the more likely it is that a repair will be required. One thing that the American people are hoping is that the election can help boost their economy and they can then start planning for the future in a more stable environment.

It seems that they are having a few problems over in America in terms of failing car dealerships. Over the weekend there was a report released that projected that almost four thousand automotive dealerships could potentially go out of business before the end of the year and next year. This is due to a combination of a reduced number of cars being sold, a rise in maintenance costs and the overall state of the countries’ economy. Also, to add to the woes of such businesses, potential investors from the automotive industry are no longer willing to invest; especially in the used cars market as the environment is just far too unstable at present, which presents increased, challenges to earn money. This news comes after one of the biggest Chevrolet dealerships filed for bankruptcy due to their being much less of a demand for their cars and also due to the lack of finance and credit being available to buyers due to the downfall in the banking system. This came as much of a surprise for many as the company was previously operating at over 2.5 million dollars per year (when at its optimum level). The forecast also stated that the sale of lighter cars is expected to decrease to just less than fourteen million vehicles during next year. The result of this being that the dealerships will need to cease trade. It is expected that 2009 will be a poor year in terms of performance for the used car industry and that it will not be until the year 2010 or 2011 that sales will begin to increase again. However, it isn’t just Chevrolet that has been hit; Ford and Chrysler are also experiencing a decrease in demand for their cars. There has been as much as a twenty four percent decrease, which has contributed to the downfall of sales. The new cars section of trade has also been drastically hit given the cost for production is much greater than for used cars. It is expected that the automotive dealerships will be operating a tight ship up until the end of this year and throughout 2009 where it is expected car sales will decrease even further. The fact that finance is not as readily available to buyers as it once was, has had a massive effect on vehicle purchases and profits.

There is so much information online sometimes it is hard to know what to believe. I was reading something the other day that shown that car repairs were one of the most profitable and frequent types of car maintenance in the UK. I read a report that was outlining some of the problems faced within the car industry and how some vehicle repair shops put the lives of drivers in danger by conducting less than satisfactory repairs. It did outline however that most garages did indeed provide a safe and reliable solution but warned car owners to beware of the so called “bogus” repair companies. The knock on effect of such goings showed that car crash levels increased, which in turn increased the levels of car insurance premiums. Apparently used cars repairs ranked third amongst the top ten complaints by consumers in America. Now of course, the U.S is a much bigger country than the UK but nonetheless, these statistics make for a negative reading. I suppose that is one of the main problems with used cars in that they normally not covered by manufacturer warranty as most are only covered for up to three years. However, a nearly new car may well still be under manufacturer guaranteed, which is an added bonus when purchasing. The report continued to show that one of the main faults that would occur from a shabby repair job is that cars would break down on the motorway at high speeds or when driving around town when using low rev rates. Imagine breaking down on the motorway at a high speed? It doesn’t bare thinking about and so the report advised all motorists to look in detail at the garages credentials before entering their car in for repair. Having a garage recommended by someone or word of mouth is probably the most important and reliable source of a garages credentials. In fact this is probably the best type of advertising in any business – not just within the cars industry. Also, getting a written estimate is advisable as you will get a much better idea of what work is going to be undertaken including the cost of parts, labour and any administration fees for example. By abiding to such things, it can provide a more trustworthy selection of repair centre and will stand you in good stead in terms of getting the correct job done.

So we have a potential buyer looking for a new car to buy before the Christmas and New Year festive season. What does he do then if he wishes to buy or reserve a car online? Firstly then the user will have to decide upon the type of car that he wishes to purchase. The relevant research will then need to be carried out in order to find the vehicle in question and to find a Website that he can trust. Upon finding the selected the chosen one, they will normally have a few options; telephone the dealer direct, contact the dealer via email or reserve the car online by paying a small deposit using a payment system such as World Pay. Most people will indeed contact the dealer via telephone as buying a car; whether it be used or new is a quite a big purchase. Therefore by hearing someone else’s voice on the other end of the telephone provides a comfort that can help smooth through the purchase. So what about the car finance then? Well, many Websites offer finance to customers via a separate section or page that requires them to fill out an online application form. However, the dealer selling the cars can also offer a package, which would provide both convenience and less hassle. More advanced systems can sometimes be found where the cars stock number is built into the car finance application form and so unbeknown to the user, they obtain finance from 2 totally separate sources. However, the process is so smooth that it doesn’t affect the purchase or finance application in any way. Once both processes are complete, the buyer will then be contacted by both the finance lender and the car dealership. The process is then completed. This is quite a common series of events within the used cars market as many of the dealerships provide their vehicle stock to various third parties in order to get optimum exposure online. In fact, what you will notice with many of the used car Websites online is that many of them in fact provide the same search results as one another. The reason for this is that a big company such as Bristol Street Motors will provide their stock of cars to these sites in the way of an automated process that issues the latest deals and prices on a daily basis. Therefore this ensures that the Internet user is kept up to date and has access to all of the latest cars being made available for sale by the industries main players.

Touching upon an earlier entry, I too have been researching into some documentation about the safety of cars and the new types of inventions being made by the top car companies to provide vehicle drivers with a safer driving experience. Having already discussed the topic of airbags and how they were only brought into production a few years ago, it seems that the guys over at companies such as Volvo (who have a very strong reputation as having some of the safest cars ever built), BMW and Honda etc are introducing new concepts into vehicle safety and are even trying to help the consumer save money on their fuel / oil. I was discussing such topics with a friend of mine yesterday who informed me of a new fuel efficiency program being introduced by a company over in America who are working on a special device that will allow car owners to save money on their petrol (or gasoline if you are American). The most impressive thing about this new invention though was the fact that it could be used on all types of cars; new cars, used cars, vans, commercial vehicles etc and wasn’t restricted to any of the above due to it being an external device that “clips” onto the fuel pumps under the bonnet. The mechanics behind this being that it will make the fuel “thinner” that will, in turn, mean less fuel is being wasted or absorbed by the engine itself. By doing this, less petrol will be consumed, which will mean the car can clock up more miles than it normally would (improving the mpg rate). Now as noted above – apparently this new piece of technology will be available to all cars and not just new ones being built in the factory. It will be available over the counter at various vehicle outlets worldwide and is set to take the car market by storm. However, before any of the readers get too excited, no date has yet been set for its release and there has been no “official confirmation” by any of the manufacturers. Therefore, at the moment – it doesn’t exist. I suppose you could kind of liken it to the various prototype cars that are often on display throughout the various car sites and television programmes. Call it a “teaser” of some sort. Thinking about is, if this did get the go ahead, it could not only be cars and vans that could benefit but also bikes, trains and maybe even aeroplanes.

In the past I have brought it to the attention of my blog readers about the number of promotions on offer for cars and vans alike. More recently though it seems that Vauxhall are offering some excellent rate on cars within their new range of vehicles. I heard that 0% finance was being given on many of the cars at my local dealership. Whether or not this applied throughout the UK and beyond I am not so sure? Check the Vauxhall Website for more details on this one guys. Previous to this promotion there were some dealerships and car manufacturers that were offering much more in the way of second hand cars and those used vehicles that were popular among car buyers. The reason for these promotions was no doubt due to the time of year and the fact that new business is an absolute priority for the car companies and organisations trying to avoid the credit crunch. As it happens though, it seems that all of the report that say people do not have any money to buy cars may seem a little inaccurate given the amount of prospect buyers I saw at my local Toyota garage yesterday. There were loads of people shopping around the showroom and outside at the second hand cars and used parts sections. In my opinion it is the media that promote all the doom and gloom and use a lot of it simply to sell newspapers and justify their existence on the news channels. Maybe those people that were looking around the car showroom were buyers for the future – maybe after the New Year or they may have even just innocently been passing by. However, the fact is that the cars market is in no way on the decline and with promotions like the ones being offered by the likes of Vauxhall etc – it is only a matter of time before things are back to the way they were before the “credit crunch”.

I have a slight dilemma. With me currently being in the market for a new car, I have found two that really tick all of the boxes; a used Vauxhall Vectra and a used Vauxhall Astra. The only problem is that the Vectra is way up in Scotland, which is like a 4 hour plus drive from where I live. Whereas the Astra dealership is only just over an hour’s drive away. However, the Astra is a bit more expensive and ideally I want the Vectra as it has a bigger engine and looks more elegant. This is the problem with smaller car dealerships; they do no deliver or if they do – it is at an extortionate cost. However, because they are more desperate for business and the fact that they only sell used cars means that there is more room for bargaining with them. However, a four hour plus drive all the way up to Scotland for the sake of a few hundred pounds; is it worth it? I’m not so sure. Maybe if it was a brand spanking new Audi R8 it may not be as much of a problem as I would no doubt look forward to the drive back. However, this purchase is only for getting from A to B and will be used for work alone, which makes it even more of a pain! However, due to the line of work that I am in – a used vehicle must be purchased and so I do not have the choice of many different cars. I do like the Astra from Vauxhall but it isn’t the new shape, it is the older version (before anyone questions it!). Therefore I suppose the questions is; is driving all that way necessary in order to get the car that I want even though it is slightly more. Plus when you add the cost of petrol for getting up there and then the return journey, it makes it even more costly. Buying cars is just not easy anymore is it?!