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Impacts of the Chronovirus on the car industry

Spring is usually one of the most popular times to buy a car. The weather is warming and customers want to get set with a nice new car for the Summer but with the recent outbreak more people are choosing to stay at home and dealerships have limited staff so it is inevitable that new car sales will be effected in the up and coming months.

The motor industry is one of many industries that is being affected by Covid 19 commonly known as the Chronovirus. Many of the global manufacturers responsible for 2 thirds of UK’s yearly vehicle production are closing their factories for an unconfirmed period of time to protect their business and its employees.

Here at Lets Talk Finance we are taking the pandemic very seriously. We are following government guidelines carefully to try and ensure our staff and customers do not get effected. Business is open as usual with our staff working from home all with access to answer calls and emails in a safe environment and our office hours stay the same.

In recent weeks BMW, Honda, Toyota, and Volkswagen have joined the growing list of car makers to halt all of Europe's operations. The UK’s largest Vehicle manufacturer Jaguar Land Rover has announced they will be shutting their factory in Halewood for 2 weeks but this time frame is not confirmed for definite.

More vehicle manufacturers are set to shut up shop for a period of time to allow the growing number of cases to fall so that the virus can be contained. This is having a negative impact on the stock market with share prices rapidly falling which could mean that it takes the businesses some time to operate at a reasonable capacity due to limited funds.

The Chronovirus has brought the Vehicle industry to a halt and experts believe it might be difficult for them to gain the ground they are loosing due to the fall in sales prior to the pandemic for 2020 because of all of the consumer uncertainty from Brexit in the UK. Not only that but when factories do re open difficulties might arrise in shipping vehicles over seas with restrictions on travel and also obtaining parts to make their products which usually come from all over the world.

We believe the Markets will recover however lots of manufacturers will be left weak from the loss of profits over a long period of time. There are no statistics available as to how long it will take for the UK car market to recover.

Vehicle Leasing

Vehicle leasing will remain a cost effective option for UK customers as depreciation is not a worry due to never owning the car or van. This means you know exactly how much it will cost over the term of the agreement and at the end you simply hand it back to the finance company. The only additional cost you might have to pay is for damages and excess mileage.

Many people in the UK who usually out right purchase or take up alternative finance options like PCP and HP might decide leasing is a better option at this time to protect their future earnings / savings. We have access to some of the most competitive UK lease deals on all makes and models of vehicles.

Vehicle manufacturers have announced that orders already placed will be prioritised at the factories when they re open. There are lots of stock vehicle offers still available but we foresee a potential delay in the future for factory orders when manufacturers are attempting to regain their strength on the production lines.

Another benefit to leasing a vehicle is that you can do it from the comfort of your own home. Here at Lets talk finance we arrange everything over the phone and online and if finance is approved we will arrange delivery to your door step in the UK for free.

If you would like to know more about Car leasing please get in touch with our friendly team of experts on 01625568612 or email sales@letstalkfinance.co.uk

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23rd of March 2020

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