Low car sales provide insight into nation’s finances
Released
on: September 18, 2008, 12:52 am
Press
Release Author: Gregory
Pennington
Industry:
Financial
Press
Release Summary: Falling sales of new cars are another indicator
that today’s economic troubles are affecting people in every
part of British society, says debt management company GregoryPennington.com.
Press
Release Body: Dropping sales of new cars should serve as a reminder
that economic downturns can affect everyone, whatever their socioeconomic
status, said debt management company GregoryPennington.com.
Figures
from the Society of Motor Manufacturers and Traders (SMMT) reveal
that the number of new cars registered in August 2008 was down
18.6 per cent compared with August 2007. August is usually a quiet
month for new car sales, but this year saw the worst August for
new car sales since 1966 – just 63,225 registrations.
Premium
brands, according to The Times, ‘were among the hardest
hit, with Aston Martin suffering a 67 per cent drop to just 19
cars sold’. Land Rover sales dropped 58 per cent, and Jaguar
sales 41 per cent.
“This
kind of news challenges an often-held assumption that the impact
of economic turbulence is more likely to felt among lower-income
individuals,” said a spokesperson for the debt management
company. “Even less-expensive new cars, while not ‘luxury’
products, tend to be purchased by people who enjoy a reasonably
comfortable standard of living.”
Following,
as they do, the news about declining sales in other market segments,
the SMMT figures are a stark reminder of the decreasing spending
power of the population as a whole. According to a report from
comparison site uSwitch, the average UK household is £2,500
worse off than last year.
“While
it’s good to see people taking sensible steps to reduce
their non-essential spending,” the spokesperson for the
debt management company continued, “that reduced spending
will clearly have an effect on the health of British industry
– in this case, the car industry.”
Furthermore,
the savings people make are often ‘swallowed up’ by
rises in essential bills, such as food and utilities. By definition,
these bills can only be reduced up to a certain point.
Under
certain circumstances, however, there may be ways to reduce monthly
payments to secured and/or unsecured debts.
“Homeowners
may find there are ways their mortgage provider could help them
service their mortgage debt during a difficult period. Even temporary
concessions can make all the difference to a household struggling
to keep up with mounting bills, shrinking income, or both.”
Nonetheless,
any change to the way they repay their mortgage can have a substantial
impact on the borrower’s long-term finances. It may make
more sense to look into the various forms of debt help which can
could free up the necessary money by reducing their payments to
unsecured debts.
Many
people enlist a debt management company to negotiate with their
unsecured creditors on their behalf: “Unsecured creditors
may be willing to take a flexible approach to repayment agreements
if this is the best way for the individual to repay the debt as
soon as realistically possible.”
A
debt management company will talk to each of their client’s
creditors, explaining how their financial situation has changed,
and negotiating concessions: “They may agree to accept lower
payments, for example, freeze interest and / or waive charges,
helping the borrower bring their expenditure back in line with
their income.”
“Debt
management is by no means the only option. Nor is it always the
most appropriate – many people with financial problems could
benefit more from a debt consolidation
loan or IVA (Individual Voluntary Arrangement), either of which
could help them reduce their monthly expenses, freeing up the
money they need for essential bills. The important thing is to
seek professional debt advice sooner, rather than later.”
Web
Site: http://www.gregorypennington.com
Contact
Details: Pennington House
Carolina Way
South Langworthy Road
Salford
M50 2ZY
Melanie Taylor
melanie.taylor@gregorypennington.com
0845 056 6480
2012
