Used And New Car Buying Remains Confident Despite Brexit Vote
Hardly a month passed after the infamous Brexit decision evoking panic and negative apprehension among car buyers and we are amazed to see steady growth and usual demand in the used and new car market. Many industries just after Britain decided to quit European Union were undecided about the immediate and long term outcome of this on their business. Many thought that the decision will slow down the sales of used and new cars beside taking a toll on the confidence of the customers. But after all, the outcome was proven to have outpaced the cry and panic over the decision.
We can now safely assert that despite what followed the Brexit vote buying of used and new cars remained confident. If we need to refer to results, we can put forward the sales figure experienced in this span of time by used car dealers such as Jennings Ford Direct. Jennings has experienced positive growth in sales of used cars, particularly in used Ford Focus. Jennings and many other used and new car dealers have experienced steady growth in sales.
To assess the confidence in car buyers we can particularly take the case of Ford, which for a long time has been one of the best selling automobile brands in UK across the segments. Ford used cars besides the new one also experienced consistent sales in the post- Brexit scenario. This positive outcome literally came as hilarious and astonishing since initially after the decision Ford and majority of the automobile brands in UK were tremendously apprehensive. Lack of confidence that immediately prevailed after the decision soon became subsided by reinstalled and revived confidence through consistent sales. The Brexit vote which for the time being shook the confidence of people finally could not matter much in some industries like automobile.
One can only assess the turnaround of expectation against negative apprehension in the light of immediate reaction that followed the Brexit. As per the concerns expressed at that time by the chief of marketing for Ford in EU, just because food, health and few other categories are going to experience the impact of Brexit, automobile brands are also likely to experience a hike in prices and consequent down slide in prices. But he also admitted that until then the consumer confidence continued to be strong and sales went on to experience positive growth.
Ford following the decision actually came up with plans for variety of outcomes. As they openly expressed confidence citing that their experience with UK market spans across decades and they have seen the rise and fall of sterling at various times. Obviously how Brexit was going to pay out to the used and new car market they had no idea initially but over time the confidence was installed and the industry has experienced a positive turnaround.
Finally some recent statistics will confirm to this positive trend found in car market. A recent survey conducted by website Motoring.co.uk once again came up with positive results. More than 70% of respondents in the respective survey clearly expressed the Brexit decision did not at all affected their buying decision of the car model they wished to go for. Another 73% of respondents said that the time of purchasing a new car also not changed for them following the Brexit decision. A whopping 76% of respondents said that the decision did not change the way they were planning to finance the car to be purchased. Only a negligible 22% of prospective car buyers thought that the Brexit can affect on the amount they can shell out for buying a car. While the negative thoughts and panicked expectations about the outcome of the referendum literally swept the buyer communities and opinions from the industry just after the decision, the outcome in the months that followed only turned the whole thing positive.
The pain concern regarding a hike in price now seems to be irrelevant since majority of vehicles are now being bought attractive finance package besides getting the advantage of lower interest rates. The finance schemes coupled up with lower interest rates will nullify the effect of incremental price hike. So, the UK car market seems to remain positive and focused on best value for money instead of the negative impact speculated following Brexit.