New car sales 2019 – Why are AP`s rising when sales are falling?

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  • #74241 Reply
    Brydo
    Participant

    You would think that with car sales falling that motability would have manufacturers kicking down their door to take their cars, so why are APs not falling?

    Some 3.4 per cent fewer new cars were registered in March 2019 compared to last year; business sales tumble by 44.8 per cent
    The number of new cars registered in March 2019 dropped by 3.4 per cent compared to the same period last year, with industry chiefs warning March’s number-plate change makes the month a “key barometer” for industry health. Some 458,054 new cars were registered last month, down from 474,069 in March 2018.

    As well as an overall picture of gloom, delving further into the figures reveals concerning individual pockets of worry. Sales to businesses – companies running up to 24 vehicles – collapsed by 44.8 per cent, from 22,932 registrations in March 2018, to 12,651 last month.

    https://www.autoexpress.co.uk/car-news/105893/new-car-sales-2019-march-sees-registrations-fall-in-key-barometer-month

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

Viewing 6 replies - 1 through 6 (of 6 total)
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  • #74255 Reply
    ChrisK
    Participant

    What we see in the media and what we see in real life are World’s apart and living in a part of the city they call “deprived” I can’t believe the number of 19 plate cars I’ve seen going down our street the past few weeks. I can’t say I’ve ever seen anything like it before where normally I would see one or two the first few weeks of March but this year it more like ten to twenty.

    It could be just folk passing through the area but if the Daily Mail see it they will be reporting how proud they are supplying all these Motability cars to the disabled out of their taxes. ?

    #74275 Reply
    Mike
    Participant

    You would think that with car sales falling that motability would have manufacturers kicking down their door to take their cars, so why are APs not falling? Some 3.4 per cent fewer new cars were registered in March 2019 compared to last year; business sales tumble by 44.8 per cent The number of new cars registered in March 2019 dropped by 3.4 per cent compared to the same period last year, with industry chiefs warning March’s number-plate change makes the month a “key barometer” for industry health. Some 458,054 new cars were registered last month, down from 474,069 in March 2018. As well as an overall picture of gloom, delving further into the figures reveals concerning individual pockets of worry. Sales to businesses – companies running up to 24 vehicles – collapsed by 44.8 per cent, from 22,932 registrations in March 2018, to 12,651 last month. https://www.autoexpress.co.uk/car-news/105893/new-car-sales-2019-march-sees-registrations-fall-in-key-barometer-month

     

    I suppose overall, that as volumes (sales) fall the cost per unit (car) increases.

    For example a production line is most efficient at a high volume rate of production. Slow it down and the unit cost rises as it is not so efficient.

    Then factor in for example, space on the car carrying ships is booked a year in advance. If they then ship less cars in that space again the unit cost per car rises to cover the empty spaces.

    Add in all these sorts of factors and they incrementally increase the ‘per unit’ cost which ultimately is passed down the chain.  Motability being in the chain, with us (the customer) at the end.

    Unless a manufacturer wishes to ‘kick start’ sales with special offers (and cover incremental cost increases themselves) then it is quite a linear upward increase on unit prices.

    Mike

    #74281 Reply
    Brydo
    Participant

    Mike using your thinking i assume when cars were flying off the assembly line our APs were very low, i must have missed that lol.

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

    #74287 Reply
    SaintsMan

    Could the fall in car sales be a result of people losing their DLA or PIP and could the higher AP’s be a result of Motability having less buying power.

    #74291 Reply
    Mike
    Participant

    I think you can also add in the fact that the allowances used to fund a Motability vehicle now only rise by CPI annually.

    This is less than the true rate of annual inflation, which was better matched when the allowances used to rise by RPI (it was changed to CPI when Osborne was chancellor).

    Thus as years pass, the gap widens between ones buying power using the allowance and the actual cost of the vehicles which will have risen by much more than the annual CPI rises.

    Hence the increase in Advance Payments.

    Mike

    #74315 Reply
    Philjb

    When I first looked for a motability car last year it was the long waits that made me walk.

    In the same way I would if I had a wad of cash in my pocket and I was prepared to travel anywhere.

    How can they sell cars they can’t deliver in a reasonable time frame?

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