The banks may be back to normal but the rest of the economy still has a long way to go. With inevitable tax rises on the way as well as VAT going back to 17.5%, prices for goods and services are sure to go up across the board. This will trigger the return of Thatcher's old arch-enemy: inflation. To counter inflation, interest rates are likely to rise, so we're all going to feel a lot poorer.
It is hard to tell for sure, but the car market may well stagnate much more profoundly than before. I certainly don't see car sales in January, February and March being particularly strong. Most dealers have already increased their prices because they know that they're going to need to discount them heavily by March if not before. I predict dealers fighting over each other to secure new car sales come Spring/ Summer.
Right now is possibly the worst moment to buy a new car. My advice to anyone considering a GTI is to say to your dealer: "you know what? I'd love to buy one but i just can't justify it at the prices you're currently charging. I think I'm going to wait." Hesitation on the part of buyers is what will force prices down.
So, dear friends, have courage, stand your ground, and wait patiently for the deals on wheels that are coming.
