The surge in the number of new car registrations in the UK has been welcomed by most in the car industry, but some industry consultants are warning that this surge could spell trouble for those who sell used vehicles.

Attleborough, Norfolk -- (SBWIRE) -- 05/04/2015 -- David Bailey, who is a Professor of Industrial Strategy at the Aston Business School, highlighted this issue. Earlier this year, he pointed out that a flood of new cars could lead to too many vehicles flooding into the used car market, which could depress values.The only way this fall in prices, and therefore fall in profits for used car dealers, would be avoided was is if demand for used cars stayed high.

Fortunately, at the moment that is exactly what is happening. The number of used cars sold does is keeping pace with the number of trade in vehicles that are becoming available. There is strong demand for used cars in Norfolk and many of the UK's counties.

However, the danger has not passed. Demand only has to drop slightly for the number of trade in vehicles available to overwhelm the market and push the price of used vehicles down. So far, there are no signs of that happening, but UK economists point out that zero inflation is leading to UK consumers putting off big purchases because they believe that if they wait the price will fall. This mindset could start to slow the sale of used cars.

The other issue is that the cost of petrol and diesel is starting to rise. When that happens buyers start to think twice about traveling by car, and begin to wonder if they really need, or can afford, a new vehicle. This means that the number of cars sold falls slightly when fuel prices rise.

Lastly, the fact that there is an election due affects how willing people are to spend large sums of money. People are unsure of what a new government will do, so have a tendency to be less prepared to buy big items like cars just before and just after an election.

For Media Contact:
First Name: Alan
Last Name: Ford
Business Name: Abbeygate Cars Attleborough
Address: Exchange Street
City: Attleborough
County: Norfolk
Postcode: NR17 2AB
Country: United Kingdom
Phone No.: 01953 455585
Email: alan.ford@abbeygatecars.co.uk
Website: http://www.abbeygatecarsattleborough.co.uk

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

These latest statistics, which were released by the DVLA, earlier this year, show that new car registrations are running at record levels across the UK.

Attleborough, Norfolk -- (SBWIRE) -- 03/31/2015 -- Figures covering sales during Q3 of 2014 for Great Britain and Northern Irelandshow strong car sales. This reflects a general improvement in consumer confidence.

However, there is considerable variation across the UK in the number of new vehicle registrations. This largely reflects the number of vehicles per 1,000 head of population. The more urban an area is the fewer vehicles are registered per 1,000 people.

In the London area there are now only 357 vehicles registered for every 1,000 people living in the capital. Whereas in the less urbanised East of England that figure is 661 vehicles per 1,000 people. That is the highest in the country. Sales of new and used cars in Norfolk has been strong since mid 2014 and look set to continue to be so, at least during the first part of 2015.

People in rural areas rely heavily on their vehicles, so are far more likely to replace their vehicles than people who live in urban areas are. In urban areas, there is far better access to public transport, and consumers are less dependent on cars.

When the recession struck in 2008, many consumers delayed updating their vehicles. They simply did not have the confidence or ability to commit large sums of money to buying a new car, so many people took a make do and mend approach to car ownership. The fact that the cost of fuel was so high also led to less car usage, which in turn meant that people did not need to change their cars so frequently.

Now the price of fuel has fallen and people are starting to feel more financially secure people are once again confident enough to invest in a replacement vehicle. Add in the fact that there is once again reasonably easy access to cheap finance for both new and used cars and it is understandable that car sales are on the increase in the UK.

Confidence is high in the motor trade. During 2015, the SMMT expect sales of both used and new cars to remain stable.

For More Information Visit the Website at: http://www.abbeygatecarsattleborough.co.uk

For Media Contact:
First Name: Alan
Last Name: Ford
Business Name: Abbeygate Cars Attleborough
Address: Exchange Street
City: Attleborough
County: Norfolk
Postcode: NR17 2AB
Country: United Kingdom
Phone No.: 01953 455585
Email: alan.ford@abbeygatecars.co.uk
Website: http://www.abbeygatecarsattleborough.co.uk

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm