With the further outbreak of the Coronavirus, there are huge concerns for global economy and one of the largest industries in the UK is the car market. Here is a summary of what is currently happening in the UK car market.
- Car dealers are looking into “online only” car sales as virus spreads. As consumers stay at home over coronavirus fears, car dealers are making it easier to buy online for fears of people not wanting to come to the dealerships.
- Jaguar Land Rover JLR predict a massive 85% sales slump during the coronavirus outbreak and are concerned about delivery of parts from Asia to their UK assembly plants.
- Coronavirus threatens to wipe out 1/3 of Nissans profits, putting their whole brand and alliances under serious financial strain.
- Hyundai and KIA have recently stopped several assembly lines in Korea with Nissan suspending its production in Japan
- Fiat Chrysler Automobiles have said that production at one of the European plants will be suspended this month.
- Aston Martin share price plunged 21% over night (9th March 2020)
- Volkswagen have closed all of their Chinese plants, which will cause a domino effect on their European production development
We predict that used car prices are set to plummet very soon, as uncertainty continues to grow in the UK. With the general public advised against leaving home let alone visiting car dealerships to look at purchasing a new car, this will result in dealership sales drastically falling. This directly effects the used market as they will not be buying new stock to replenish the sales, therefore less demand means lower prices.
What to do now?
If you considering selling your car soon, we recommend you do this ASAP to avoid suffering the big book drop that will be coming towards the end of the month into April 2020 as the virus continues to worry the UK. This is not to try and push you into selling your car, you may feel you want to keep hold of your car whilst this pandemic passes. However if the decision is to sell the car, 1st sooner than later to get the best price as it’s predicted that a car worth £5,000 this month could drop over £1000 to £4,000 in a matter of weeks.