Car Prices UK

Changing market conditions in will effect car prices in the UK

Car prices in the UK have risen due a drop in sales of around a percent as of the end of January 2009. The car industries sales figures dropped between 20 and 23 percent in the last few months, and various industry representatives are still trying to free up car credit for consumers.

The fall of the sterling has led some manufacturers to raise their car prices in the UK. However, some manufacturers have done the opposite and provided consumers with an incentive to buy, these include deals to the extent of buy one get one free.

The choice of different manufacturers is interesting in how they believe they will succeed from different approaches on car prices. There is merit in using both, intising consumers with lower cost goods and attacking a more mass market position. However, some mnufacturers obviouly believe that using a more specific targeting and raising car prices to cover costs with a lower sales turnover is the best way to surivive the recession in the UK.

Companies such as Ford who manufacture their goods in both the UK and Europe have problems with currency changes, causing rising costs as their European operations become more and more expensive as the Euro stengthens against the pound. The changes in car prices in the UK will vary in different approaches in how to deal with falling sales and rising costs. Do you focus on improving sales volume or do you use car prices in the UK to bail you out through raising them to ensure an amount of profit on each sale?

published: 03/02/2009