If your car is due for replacement sooner rather than later, you stand to benefit hugely from the European debt crisis. Car manufacturers are to an increasing extent resorting to discounting to stimulate sales of new cars.
The situation is particularly bad for Italian car dealers, but things in the UK are not much different. According to the Italian Association of Car Dealers (Federauto) it has become a 'vicious circle' for car dealers.
After Germany, France and the United Kingdom, Italy is the biggest car market in Europe. Car sales in this country have dropped by 11% during the first nine months of 2011, causing many car manufacturers and dealers to offer substantial discounts.
These discounts vary between 10% and 20%, but they can be as high as 35% in extreme cases. Other European countries have been forced to follow suit.
In the UK various manufacturers are offering similar incentives. Mazda, for one, offers 20% discount on its Mazda 6 sedan.
Audi/Volkswagen now offers up to 15% discount, substantially more than the 10% it offered during the 2009 financial crisis says the MD of Drivethedeal, a discount car website in the UK.
The man in charge of Ford's European operations, Stephen Odell, said incentives "got a little more aggressive during the third quarter. He went on to add "That matches the fact that the industry has declined. It's also when the concern really started to bite."
Author - Louise Hutchinson
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