The auto industry as a whole has undergone significant changes since the onset of the global recession in 2007. The primary reason is that buying a car or truck really is discretionary, most people don’t have to buy one because whatever it is that they’re currently driving has no more service life left in it, the vast majority of vehicle buyers make the decision to do it because they want something better than what they have. This is why new car sales have traditionally been strong and Scotland is no different in this respect.
However, along with the global economic decline came a number of well-publicised auto manufacturer bankruptcies that shook the entire industry as a whole. People lost confidence in manufacturers, sales fell and auto-makers responded in kind by slashing production numbers. Rising petrol prices also meant that it was primarily larger vehicles that bore the brunt of the production cuts.
One consequence of manufacturer cuts is that lower production and availability of new cars has meant a raise in prices for new cars and trucks. People simply have to pay more in a declining economy where natural market dynamics should have people paying less.
So the higher cost of new cars means that owners today are taking better care of the vehicles that they have, which in turn means better quality vehicles are making their way to the used car market in Scotland.
Falling global petrol prices are also having an impact as well. All those large trucks and SUVs that the new car dealers took in as trade-ins and then sent off to the auto auctions have been fading away on car lots. Perfectly good late model, low mileage vehicles that are often loaded with extras are stuck sitting on used car lots because nobody wants to get stuck paying the money that it takes to fill the petrol tanks. So now with the economy slowly nudging its way up and construction in particular beginning to pick up as well, business owners are now snapping up the large trucks; trucks that aren’t so expensive to fill up now.
The upswing of the economy has also had an impact on small to midsize used car sales in Scotland. People now have more money to spend and with the price of a new vehicle still high, people who in the past may have bought a new vehicle are now taking the used option. They’re also finding that when they do this, the vehicles are in better condition as well from the better care and maintenance they’ve been receiving from the previous owners.
So it’s a win-win situation for both buyers and sellers in the Scottish used car market over the last year. A trend that is expected to continue by more dealers offering in-house financing that makes buying a used car or truck easier for people with challenged credit.
Peter Vardy Limited is one of the most exciting new names to enter motor retailing for many years. They’re a young, vibrant company with a fresh approach and a mission to offer something different to customers looking for cars for sale in Aberdeen and aberdeen car sales.