The effect that fuel prices have on the UK car market has been a particularly strong factor in recent months. Both diesel and petrol prices have hovered around the ?1- per-litre mark and at times threatened to climb even higher, and at that level the market for thirsty SUVs comes under particular pressure.
But prices have now started to fall, on average around 5p per litre less than at their peak. This means that consumers are now happier to entertain the prospect of 4x4 ownership. The issue of running costs is more sensitive in the market for older 4x4s where owners are typically less affluent than those in the market for new or late model year examples.
?Analysts are widely divided on the future prospects of the sector says John Glynn, Editor of Glass's Older Car Guide explains. ?Trading conditions for the coming months can depend on factors such as the weather and the economic forecast, while some suggest the Christmas ?feel-good? factor also plays a part. But in general, most traders agree that if the current picture prevails they will be happy.?
However, SUV's never fall far from the gaze of both public and political scrutiny and it is a market subject to many outside pressures and influences. The recent move by Richmond upon Thames Borough Council in south London to charge SUV owners ?300 for a parking permit has brought the segment back into the headlines once again. This penalisation of the market is likely to spark strong dialogue from both sides of the fence and it will be interesting to see if other councils follow suite. If they do, the strong market for SUV's in the London region could be adversely affected.
In recent days all the major political parties have raised the spectacle of far reaching green taxes, particularly for fuel inefficient cars. Any moves in this direction are not imminent but the writing is on the wall.
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About EurotaxGlass's
William Glass first published Glass's Guide to Car Values in 1933 and July 2003 marked 70 years of the motor trade's ?Bible?. In 2000 Glass's merged with Eurotax, forming EurotaxGlass's - Europe's leading supplier of automotive business intelligence across 28 countries. The merger has created a group with unrivalled resources and knowledge.
Today, EurotaxGlass's offers products and solutions that are essential at every stage of the vehicle lifecycle ? from valuation, technical and fleet management data, through to estimating, bodyshop and dealer management systems and web-based services. Recent developments include valuation data for consumers ? offered via the Glass's Motoring Guide website (www.glass.co.uk) ? and the pan-European Market Intelligence Service that provides bespoke data and analysis for the industry at large.
