4x4 sales tumble in after-market
Sat 06 September 2008
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Second-hand 4x4s and larger, premium vehicles have seen falling prices and sales over the last 6 months. Estimates for the first half of 2008 suggest that the average value of a used car bought at auction has fallen by more than £1,000.
The Daily Mail reports that dealers are refusing to take 4x4s in part-exchange and say some are worth more as scrap as demand for steel has climbed sharply. Residual values are expected to drop a further 12 per cent by the end of the year.
This trend is reported to be slowing down sales to buyers who want to trade in their "gas-guzzler" for a more fuel-efficient model. According to the Financial Times, the price of second-hand 4x4's has dropped 14% over the last year. Car manufacturers have closed SUV factories in the United States and sales are falling in most countries of Western Europe. Other markets, however, remain buoyant, particularly in the Middle East, the Gulf, Russia, China and emerging economies such as India, Mexico and Brazil.
Public awareness has also been raised in the UK by action groups such as the 'Alliance Against Urban 4x4's' which says that 4x4s are a 'poor choice of vehicle' because they are 'dirty, dangerous and anti-social.'
In addition to the 4x4 slump, premium brands have also suffered sales losses, with Aston Martin seeing a 67 per cent drop during August (to just 19 sales). Land Rover sales fell 58 per cent to 422 cars and Jaguar fell 41 per cent , also to 422 cars.
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