Used Car Market in the UK

There is an article in The Times today about the Motor industry - do not expect any growth in the UK Used car market for another 18 months....the decline in recent years is now seen as "alarming", no doubt felt in all our paychecks - not even FLIP will save you in the future!

Originally Posted by Unregistered

There is an article in The Times today about the Motor industry - do not expect any growth in the UK Used car market for another 18 months....the decline in recent years is now seen as "alarming", no doubt felt in all our paychecks - not even FLIP will save you in the future!

flip's not saving us now, and hasnt been for the last couple of years!.... look its quite simple, erac are not going to pay you a decent base salary, it is impossible to make consistent bonus, so you are really only left with one option- LEAVE! ( this is what so many people in u4 have already done!)

Sounds Like A Disgruntled U4 Remarketer

[joely f]

Originally Posted by Unregistered

Sounds Like A Disgruntled U4 Remarketer

Sounds like a wanky area or city manager

The problem isn't so much that the used car market is in decline but more that motor manufacturers are no longer pushing volume at any cost. This is due to parent companies such as Ford and GM are losing million of pounds and cannot sustain it any longer. As a result Ford UK, Vauxhall etc need to make profit on every unit.

The problem for car rental firms is that 18 months ago Vauxhall would come to a company like ERAC and say "we need to sell 2000 Astra's, how much do you want to pay for them?" Nowdays they have to make at least £1 profit.

As a result ERAC have to buy cars for a higher price which obviously means that they make less money when they sell them 6 months later. To put some Math’s to it the true depreciation of the cars used to be 0% over their life. Now they are depreciating at 0.6% and that’s the problem with flip.

The situation will change. Manufacturers have to continue making cars at the same rate for the factory’s to make economic sense. They will go back to "volume at any cost" when they have produced too many cars. But it will take a year to 2 years.

No flip until 2008? No thanks!

[long gone]

Nobody worth any salt in the motor trade sells volume over profit- thats fools gold-making more work for less money.The used car market is going well if you look at Vardys- they are having it off-as they say in the motor trade.

no, im sorry but i have personally spoken to frosty and PDF and they have both assured me that we are just in a lull at the moment..any month now the used car market will recover and we (the people who havent yet found other jobs- oh i mean the people who are 'loyal' to erac) will be rolling in money.
i cant wait...i have taken out a number of personal loans as i am really sure they are telling me the truth, and when the money comes rolling in i will just pay them off. Oh its great living with such hope at erac.

ps, with such reassurance, i cannot understand why everyone is leaving / has left / is looking.

you will be fine my paycheck is excellent this month just keep taking care of your customers, run tight, sell up and sell waiver, Go marketing, train your employees and we will create opportunities for you young man!