Low Car Sales in October 2008

It was announced on the national news yesterday that car sales have apparently decreased by a whopping twenty five percent due to the credit crunch / crisis. The month of October 2008 was the worse month for sales numbers in over seventeen years. Whilst this is no doubt a bad sign, surely the fact that Christmas is only round the corner has played a big part in the sales decline? Surely the last thing on peoples mind is to upgrade their car or to use credit to get a car? In terms of new cars the statistics showed that there was a twenty three percent decrease compared to the October 2008, which makes for bad reading if you are a car dealer. In fact, with the way things are going at the moment for the car industry, it is being predicted that the sales in 2009 could decrease to the lowest levels since 1995 with less than two million cars being sold. My personal opinion on this is that the banks who are no longer lending people the finance to buy a new car are the biggest contributors to the low number of vehicle sales being recorded. If the banks were to provide more money to the various lenders then I am pretty sure that the automotive industry would benefit a great deal as people will then be able to afford to buy. The sooner this is done the better it will be and the manufacturers such as BMW, Mercedes and Jaguar etc will be able to rest a lot easier. With more credit available, more cars will be sold – it is as simple as that. This is because many people rely on such financial incentives when purchasing and so to take that away from them is bound to have a negative impact on business.