The global financial crisis which began in 2008 had a major effect on the world’s motoring industries. From manufacturing through to sales and driving lessons, there wasn’t one aspect of the vehicle industry which wasn’t effected. Thankfully, however, this is to come to an end, as the BBC has reported that new car sales are at a 7 year high.
The Recession’s Effect on The Car Market
The 2008 housing market crash had wide-sweeping effects on a number of global industries, not to mention on general businesses and consumers worldwide. These effects were felt no greater than in the automotive industry, where from 2008, new car sales began t plummet. In the US, for example, the so-called ‘Big Three’ car manufacturers, general Motors, Ford and Chrysler all required emergency loans to remain in stable operation. In the UK, the situation was similar, with a general slump in new sales across the whole of Europe.
Used Car Sales Increase
Throughout this period, although the number of new car sales was decreasing year-on-year, the number of used car sales increased dramatically to the point where they outnumbered new car sales to a significant number.
Perhaps this was a demonstration of the lack of capital in the possession of normal working people, or the need for regular consumers to prioritise their spending throughout this period. Whatever the reasons, both on and offline second hand car retailers saw sales increases beginning in 2008. In fact, used cars remain popular to this day, and consumers should always consider the great value offered by used cars when looking for their next vehicle purchase.
New Car Sales Back on Top
Thankfully for the new car sales market, the BBC has recently discovered that new car sales are back on top, with new car sales at their highest point since 2007, according to the Society of Motor Manufacturers and Traders. The report shows that the number of year-on-year new car sales has increased 10.8 percent from 2.4 million in 2012 to 2.26 million in 2013. If this upward trend continues, new car sales are certain to go through the roof over the coming few years.
So ultimately, it looks as though the effects of the global economic crash are finally starting to become obsolete – at least in the automotive industry. However only sales figures from the coming few years will let us know if this increase from 2012 figures is to be consistent year-on-year, or if it’s a fluke.