The new car market has been heading for disaster for a couple of years now but for some reason everyone stuck their heads in the sand and ignored it.

The car market has boomed for years all on the back of rising house prices and easy credit. Suddenly people saw their houses worth more than double and used the equity to get into a new car. Great for people who got in the house market early enough.

Then we got the situation where to buy a home you had to spend an average 60% of your income instead of 30%! Somethings got to give, and for most it will be the new car. We now have a generation of people who can barely afford their houses let alone new cars.

Rising house prices have ruined the economy, encouraging unsustainable growth levels around the world, people thought they were richer than they actually were and jumped on the easy credit bandwagon.

Its all about disposable income. If your pumping it into a house loan your not buying cars, boats, tv's, blah blah blah. end rant.

Luckily i got in early