Recent changes in the UK car market

During the COVID-19 pandemic, the automotive industry underwent profound changes. Widespread chip shortages disrupted the traditional balance between car manufacturers' supply and demand, leading to extended lead times and scarce discounts. Although it certainly wasn't clear from the outset, dealers thrived due to this, with reduced volume more than offset by increased profit margin. Consumers too found silver linings. The constrained supply of new cars significantly increased the value of used cars, stories abound of vehicles purchased in 2019 fetching thousands more just a few years later, everyone's asset was worth a little bit more. Particularly, affordable cars saw a surge in demand, as individuals opted for economical runarounds to commute instead of crowded public transport. 

Recent times have brought about further shifts. Despite the shift to electric vehicles (we'll delve further into EV’s in future articles), there's now a surplus of cars available again, ready to join the traffic off dealers' forecourt. While finance APRs generally remain somewhat higher than pre-pandemic levels, dealers are back in the game, offering noteworthy discounts. There's also a growing trend of subsidised finance rates, including several enticing 0% options. 

Another factor reshaping the market is the influx of Chinese manufacturers, particularly EV’s. These new players provide excellent value and are more accomplished than commonly perceived. A testament to this is the MG4, named the UK Car of the Year 2023 — yes, MG is now of Chinese origin! 

All these changes mean that having experience and industry knowledge can be a game-changer in your quest for a new car or van, and Red House Automotive is here to ensure your search is seamless and stress-free. As we know, dealing with dealers can often be a time-consuming and frustrating process, but with over 25 years of industry experience, we grasp the intricacies and challenges. That's why we handle all the hard work and negotiation on your behalf, ensuring you secure the best possible deal without the hassle.

Contact Mark Goody on 07949 047391 to find out more.