Car manufacturers
Ford and
Peugeot cut their prices in a
new car price war on forecourts. Although many
car buyers are thought to be buying their
vehicles now to take advantage of the
car scrapping scheme and reduced VAT levels, not to mention
dealers hungry for
car sales, there is expected to be a price war in 2010.
Estimates put the number of new car sales in 2010 as 57,000, but
without
scrappage scheme aid, they could slump to 35,000. Car companies
are worried by the forecasts and are pulling out all the stops to
attract customers. Peugeot may lower
car prices, whilst Ford are following suit and adding extra
equipment at no cost.
Price reductions have already been announced by
Volkswagen,
Toyota and Kia.
Kia Ireland MD, James Brooks, was reported as saying:
Residuals for all
used cars have been in freefall since July 2008 and we believe
that price reductions like this are a pragmatic and realistic
response to the current market and will help stabilise the cost to
change which is the most important equation when consumers are
shopping for a
new vehicle .
