With so many good deals out there for new motors there was always going to be reprecussions.
And it's the secondhand market that's taking a battering.
Giant motoring firm Pendragon says pre-owned cars are proving difficult to shift.
Motor manufacturers are flooding the market with new cars at knockdown prices, making it harder to offload used cars at decent prices.
Pendragon, the largest car dealership in the UK, has been expanding quickly, buying up both used and new car dealerships.
Last year, it bought the Reg Vardy dealership chain for £500m but it says there's now an oversupply of new cars which is taking its toll on the used car market.