Decline in new car sales, a sign of the times?
In the modern world, cars are often considered a necessity rather than luxury. Than go to work, but have children in school in the morning, which allowed us to visit family on weekends. It follows that sales of cars are a good indicator the soundness of the finances of the average consumer.
A new report from the Society of Automobile Manufacturers and traders (SMMT) show that registrations of new vehicles fell 21% in September compared to August figures.
It was the fifth consecutive month that the number of registrations new cars down, and the biggest drop so far – the closest is 18.6% between July and August
Debt problems or planning Careful?
Therefore, this indicator is a serious punishment that the economy is facing, or simply a sign that people take care of your finances?
"It is important to remember that it is a reflection of new car sales, not necessarily car sales as a whole," said a spokesperson for Debt Advisers Direct.
"It's very possible we've seen with the supermarkets, consumers are now only a smaller budget tight. The automotive market could benefit, or maybe people are just keeping their vehicles. "
But a spokesman for noted that the change in spending behavior still reflects a shift in consumer behavior caused by the credit crisis. "An important factor to be limiting the ability of people to obtain credit. Sales of new cars is based almost exclusively on credit, because very few people can afford to pay the total amount in advance, "he said.
"Even for those who are still able to obtain financing themselves, many are concerned the risks to the economy in general and credit may want to avoid for fear of falling into debt.
"Similarly, some who have been unable to obtain vehicle financing at the height of the economic boom may now be suffering for it. As prices of other things like energy and food, more and more are at risk of debt problems, and more debts you have, the greater the risk. "
He added that all who are struggling with debt should not hesitate to seek appropriate help.
"We urge all concerned about your debts contact an expert debt adviser as soon as possible, "he said." They will discuss your situation and help you find the best debt solution for you. "
About the Author
Debt Advisers Direct offer a range of debt solutions to suit various financial situations, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements). If you are struggling with debt, contact one of our expert debt advisers now.
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