Rover Dealers Slash New Car Prices

It was finally announced last week that Rover has gone into administration as talks to save the company collapsed in China. It was hoped that a deal with the Shanghi Automotive Industry Corporation (SAIC) would inject cash into Rover preventing the company from going into administration. Unfortunately talks collapsed late last week leaving Rover with no choice but to cease the production lines from building British made Rovers.

The closure of their Coventry based UK factory has come as a blow for the British automotive industry and has left over 6,000 factory workers without a job. It has been estimated that the closure of Rover could cause the loss of over 20,000 jobs with countless numbers in sectors that directly supply the Rover Company.

Hundreds of angry motorists also face the prospect of owning a car that may prove difficult to obtain replacement parts for in the near future. Owners of new rovers have the additional worry that their new car Rover warranty will be invalid due to the company collapse. The biggest worry for all Rover owners however is the sharp decrease in value of their cars that will follow the collapse.

This devaluation of Rover cars will not be helped by reports of Rover dealers slashing prices on new cars in an attempt to shift the cars from the forecourts. Some reports have suggested dealers are slashing up to 40% of the price of new cars such as the MG Rover. This will force the price down on the second hand car market significantly leaving many motorists out of pocket.

Obviously the collapse of Rover is devastating for British engineering and has left many workers that have made a career out of car building jobless. But is now the right time to capitalise on a bad situation and buy a brand new Rover at slashed down prices?

If you are game enough to gamble on a car that you will have to buy an additional warranty for, may be hard to find spare parts for and will decrease in value significantly more than other cars, then yes.