New car registrations grew 7.3% year-on-year
in August, according to The Society of Motor Manufacturers and
Traders, the first such rise since June 2010.
Private demand also rose for the first time
since June 2010, up 10.7%.
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SMMT figures remain negative overall, with
sales of new cars down by 6.1% (approximately 79,795 units) from
January to August, compared to the same period for 2010, leading to
a revised forecast of 1.93 million new cars to be registered this
year, down from a predicted 1.95 million and down 5% on 2010.
Despite the registration of 59,346 new
vehicles in August, sales for the period were over 20% down on the
1999-2010 monthly average.
While August, a month that usually sees a
decline in sales ahead of the September new-plate registration and
accounted for only 2.7% of sales in 2010, may bring hopeful news,
the real test of the market will be in September, a month which
usually accounts for around 17% of yearly registrations.
“August represents a relatively small share of
the new car market and the September new 61-plate registrations
will be far more important for vehicle manufacturers and franchised
dealers,” warns SMMT Chief Executive Paul Everitt.
Everitt points to fuel economy, competitive
finance offers and the variety of models as selling points that
could sustain the rise in private consumer purchases.
Dealerships agree that it is those finance
offers that can help.
“August was interesting,” says Peter Stewart,
F&I Director of Vertu Motors. “New car sales were up. General
Motors and Vauxhall offer 0% over five years, that’s a very strong
offer and working well, as are those offering personal contract
purchases.”
Other dealers across the country have pointed
to the success of Toyota’s personal contract purchases (PCP) and
Ford’s renewal and credit options in a market that was dominated by
hire-purchases a few years ago.
A broader survey of dealerships’ reaction
to the plate change will be available later this month.
richard.brown@vrlfinancialnews.com
