Filed under: Latest News
PA
Research from CAP Automotive claimed that many franchise dealers around the UK are feeling the pressure to register more new car sales this year, which could spell good news for consumers.
Several dealers could be poised to slash new car prices in the next few weeks if demand continues to remain behind sales targets for the first quarter.
Manufacturers have urged franchise dealers to push sales even harder this year after the European market experienced a collapse in new car registrations last year. Even though UK markets rose last year by 5.3%, accusations followed that manufacturers were reporting 'false' sales here as dealers registered cars to themselves to qualify for volume bonus payments.
CAP Automotive said now could be a great time to snap up a new car and tipped motorists to "emerge the winners in this year's challenging market".
Philip Nothard, CAP's retail and consumer specialist, said: "Franchise dealers will almost inevitably have to use serious incentives to keep up with new car targets. Car supermarkets will have more nearly-new cars to stock and because they operate on a low margin, high volume, basis this will mean even more competitive deals on offer.
"If more people are tempted into the market to replace their car, independents will welcome the increased availability of part-exchange type stock in the marketplace. The probable weakening of trade prices due to higher supply will also give them more room for manoeuvre on the deals they offer to consumers.
"This is going to be a tough year for manufacturers and their dealer networks but their pain looks set to be the motorist's gain."