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Current turmoil in the financial markets is expected to hit car sales in a few months, according to the managing director of IM Group, Andrew Edmiston.
The boss of the Subaru, Daihatsu and Isuzu importer said some carbuyers were going to find it much harder to finance purchases as lenders made more cautious decisions.
He believes there could be a strong divide between better off older buyers who finance their own purchases and younger buyers who rely on finance companies to borrow funds.
Impact next year
Edmiston, the son of IM Group founder Sir Bob Edmiston, said: “As a distributor with our own finance company we do not have problems but anyone who is using their own lending facility may find it much more difficult to finance a car.
“I don’t think the effects of the current financial situation will be felt immediately and car sales this year will largely be as predicted by the SMMT but into next year we could see the effects.”
Financial decisions on car purchases for the 57-plate were made before the current lending crisis gripped the economy but the 08-plate arrival could be hit.
The longer term affect of the financial situation may alter the market because more affluent older buyers choose different cars to younger people so the executive end of the market is less likely to be affected than the entry-level sector.