The crisis boosts the buying and selling of used cars

The economic difficulties that exist today in Spain are hitting every sector, and the automotive sector is no exception. According to a study carried out by coches.com, the Spanish car market is gradually approaching the purchase figures of European countries, where the rate is 1.5 used cars bought for every new car sold.

And it is that the current situation of economic uncertainty, the lack of financing and financial resources has caused a 40% drop in new car sales. Iñaki Arrola, CEO of coches.com, points out that during 2007 and 2008 a bubble formed around the automotive sector, driven by the sales incentives offered by brands and by the excessive borrowing capacity of dealerships, thanks to credit lines easily guaranteed by the dealers’ premises for the purchase of vehicles.

Subsequently, in 2009, the fall in sales caused by the closure of credit lines, dealt a hard blow to the sector, and the recovery at the beginning of 2010 was a mere mirage, because this recovery was the result of initiatives such as the Plan 2000e, which helped boost and increase sales, but the withdrawal of this plan, together with the psychological blow of the VAT increase, will bring about a new and sharp decline in the sector.

Source | Comunicae