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As off-the-production-line vehicle sale figures see a steep decrease, second hand car and van auction houses are not struggling quite so much, documenting increasing numbers of second hand wheels being put through their bidding houses.

There is no arguing with the fact that the new car market is suffering. Production has slowed down for many of the top car names, causing widespread lay offs and cuts in pay for workers. Job losses have also come from the premium car makers Bentley which shows that no market level is safe from the poor economy. Official figures show a 30.9% fall in new car registrations according to the Society of Motor Manufactures in January as compared to the previous year. This is apparently the biggest fall since 1974 and the trend looks set to continue. 3 years is the predicted length for the slump in car sales according to many industry analysts.

On the flip side of the coin it seems to be that second hand car purchases are on the up, with 2 of the largest car auction names (BCA and Manheim) stating record numbers up since last year. BCA said that more cars and vans were sold throughout January 2010 than any previous year and cost of vehicles has risen for the last 3 months. They estimate an average of rise of £300 on last year.

Car leasing is also on the up it seems as the major leasers are reporting improving numbers this year. This is likely being caused by people leasing their vehicles rather than committing to a buy during this ecomonic low point. Traditionaly vechicle leasing companies have done very well from periods of economic downturn, and this one seems to be no different.

Wholesale van prices increased by around £140 according to the other big name in the auction industry - Manheim. The increase marks the first upturn since last year’s September. Vehicles with four-wheel-drive have witnessed the most improved sales, with 6 months of increased sale figures in a row.

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