The car sales in the UK have been extremely low when compared to the previous years, but this has almost cured the problem of oversupply in the UK. If you want to know, how big of a problem this oversupplying is for the UK market, you should read what the Vauxhall boss Stephen Norman said about a year ago. He also added that the profitability of the market depends on the supply. He recommended that there should be 2 million registrations per year.
The predictions for the next year 1.9m registrations, just as Norman said. This is despite the fact that there would be massive unemployment as well as the industry will have to face potential Brexit complications. The people are now asking that whether what Norman’s said – which the other bosses also whisper but don’t say it out loud – was just about the money and whether the current conditions are suitable for profitable trading.
If you look at the quarterly results of the recent weeks from the large dealer groups, you would see that the money is certainly there. The results were better than what was expected, and there were good new car sales as well as used car sales. So, read about that and give a chance for to improve it.
So, surely, some highly profitable business was done, but there is a slight chance these were recorded in what many would regard as the golden time between the both lockdowns. This is when the pent-up demand went very high, and people sought revenge buying, meaning, they were rewarding themselves for the troubles they have gone through. But, it’s not positive in everyone’s view. In the country’s market, the M Sport trim would more like be the most popular choice. He said that the lower registrations for 2020, doesn’t promise a very good future for the sector.