‘TRADE INS’ ARE BECOMING ‘TRADE OUTS’

OVER half of car sellers in Merseyside are opting out of car ownership. Merseyside car sellers are more likely to be ‘trading out’ than ‘trading in’ according to new research. A survey by online car buying service, shows that 59% of all people selling their car are opting out of car ownership.  24% of all ‘trade outs’ in Merseyside are caused by the need to raise cash quickly, while 11% are switching to an alternative means of transport such as public transport or cycling.  According to industry insiders this high number of ‘trade outs’ is leading to increased demand for alternative and more convenient ways to sell a car.

Mark Briggs, Brand Manager at webuyanycar.com in Merseyside says:- “In the past people would simply trade in their old car for a newer model and use their bargaining position with their dealer to get the best price possible. Obviously, if you’re not buying a car you’re in a weaker position when it comes to dealing with salesmen.  Instead we’re seeing significant growth in our specialist car buying service that offers a quick and easy way to dispose of your car. People in Merseyside who feel uncomfortable with private buyers calling at their home or simply want to avoid the hassle and cost of advertising, are increasingly using this service.”

Merseyside has seen a 20% increase in people looking to dispose of their car in the last 6 months.

The research found that other popular reasons for ‘trading out’ included being given a company car and emigrating or going travelling.

Reasons for selling cars:-

- To buy another car: 40.9%

- Opting out of car ownership: 59.1%

Most popular reasons for opting out of car ownership:-

- Need to release cash: 24%

- Have been given a company car: 22%

- Choosing to use alternative transport instead: 11%

- Emigrating or going travelling: 11%

- Planning to share car with partner: 8%

REPOSSESSIONS SET TO LINE POCKETS OF NEW GENERATION BUY TO LET INVESTORS

RISING interest rates are proving to be good news for the new generation of buy to let homeowners as they scoop up bargains that yesterday’s investors can no longer afford, according to broker My Mortgage Direct.  With repossessions on the up and growing numbers of homeowners falling behind with their mortgage repayments, those with the means to stay afloat in the current climate are making the most of others’ misfortune by picking up properties that are priced to sell.

“Following the recent interest rate rises we have seen an increase in enquiries from purchasers of investment properties being offloaded by owners who can no longer afford to keep them,” says My Mortgage Direct director Cath Hearnden.  “Buy to let as a money-making exercise has certainly overstretched itself since the beginning of the millennium and some people are having to accept a loss on what they hoped would be a nest egg for their future.”

During the height of the buy to let boom around 3 years ago new builds in particular were selling for over-inflated prices and that factor has proved to be the undoing of some investors.  Bought with a very low interest rate, these properties seemed to offer a viable opportunity for purchasers to get a slice of the buy to let pie, but now that rates have risen, the closing gap between mortgage repayments and achievable rent has squeezed the life out of the idea.  With rates continuing to rise, the reality of maintaining their commitments has proved too much for some and they are having to offload their property before it drags them down, even if it involves making a loss.

“Today’s buy to let investor is more considered, better informed and less eager to buy at any cost.

Of course, hindsight is a wonderful thing and many people would not have bought had they foreseen today’s market conditions.  There is still mileage in property investment but not for anyone and everyone. With analysts predicting a surge in mortgage arrears and bad debts associated with mortgages, becoming a landlord will not be quite as easy as it has been in the past.” said Hearnden.