Breakdown Cover Articles
Car Market
The global economic downturn has had a major effect upon the car market and indeed, buying habits.
Anyone listening to the news for the last few months would know the effect that the recession is having upon the car industry. General Motors nearly went under and some of the world’s major brand names are looking for handouts.
When the recession hit the world, people stopped buying cars. It was that simple.
But for anyone who wants to compare car breakdown cover between the AA, RAC and Green Flag, it’s doubtful whether the already competitive plans on offer will be reduced anymore, for the simple fact that people are now keeping their cars longer.
Whereas two years might be a quite usual time to swap a car for a new, or newer model (pretty straightforward when there was plenty of cheap credit around), people are now thinking of keeping their car an extra year, if not two years.
The has been necessitated by not only a drop in people’s disposable income, but also by fear of job losses, salary reductions and fewer personal loans.
So, people have opted to keep their cars that bit longer and make sure that there car breakdown service is kept up to date.
So, ironically, although the new car market has effectively collapsed, the second hand car market has strengthened.
Those still with jobs and money can achieve some amazing new car deals – such as a reported 40% reduction on new Vauxhalls – which makes the Government scrappage scheme look a little flaky of course, but most people are looking for good second hand cars.
Those around two years old, with a full service history and in good condition, are attracting good prices. It is these that drivers hope that will mean less problems when it comes to car insurance breakdown cover.
Also in demand are cars that are meagre in fuel consumption terms and ones that have low emissions. It would appear that in Europe, and increasingly across the pond in the U.S., that ‘gas guzzlers’ are going to become a thing of the past.
And another beneficiary of this decision to turn away from the new car market is the parts business. Tyre fitters for example are doing a roaring trade as people who keep their cars longer, are forced to keep their tyres in good condition.
So, how this will change when the economy starts to improve, depends very much on how people’s attitudes will have changed their love affairs with their cars. In the U.K. cars are an important status symbol and unlike much of mainland Europe, the type of car and its age is close to a person’s heart.
People might just feel that the economic crash has weaned them off their car obsessions, or, most likely, that once things settle down again, the love affair between the British and their cars, will resume once again.
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