An expert has struck an optimistic note about the state of the car-buying market by saying that deals on new and used cars are "as good as they are going to get".
The observation, made by Peter Vardy, the chief executive of Vauxhall, Chevrolet and BMW retail group Peter Vardy Ltd in Scotland, adds weight to a new campaign aimed at promoting the amazing deals on offer to retailers at the moment.
Industry magazine Automotive Management has launched the campaign in response to what it thought was overly-negative coverage about car sales from the press and TV.
One reason for optimism, it pointed out, is the fact that VAT has been cut from 17.5 per cent to 15 per cent – a cut that used car dealers have been keen to pass on to customers.
More cause for optimism can be found by considering that the base interest rate is at its lowest level for 315 years, following the Bank of England’s policy makers’ decision to cut it to just 1.5 per cent.
The government is keen to encourage banks to start lending again by agreeing to underwrite some of its their riskier debts. This will hopefully give consumers more available credit with which to finance used car deals.
Used cars now generally have better fuel efficiency as manufacturers adhere to government guidelines regarding emissions. The greener the car, the less vehicle excise duty a driver will have to pay.
Written by James Christie