Confident Brits set for new car purchase record
NEW CAR sales are being tipped by analysts to break their all time annual record this year after they increased for the 39th consecutive month in May.
Brits registered 198,706 new cars last month, according to data from the Society for Motor Manufacturers and Traders (SMMT).
The figure is up 2.4 per cent on the same month last year.
It takes the number of new cars registered so far this year to 1,119,072, a climb of 5.7 per cent on last year’s figure.
Sales have been boosted by a number of factors. One is rising consumer confidence as UK unemployment continues to fall and the economy grows. Another is due to struggling manufacturers in Europe offering more attractive finance packages. Suppliers have found it easier to offload vehicles using cheaper credit rather than cutting back on production and firing staff.
“May was another good month for new car sales, up 2.4 per cent, as the carmakers continue to support the market with cheap credit. With rising consumer sentiment and a strong pound it looks likely that the market will continue to perform well over the summer. It is still possible that UK new car sales will break the all-time record of 2.58m cars sold in 2003,” said John Leech, head of automotive at financial services firm KPMG.
There was also a surge in the registrations of ultra-low emission vehicles. Only 2,838 were bought in May 2014 which has now increased to 11,842.
“The remarkable growth in demand for plug in vehicles is expected to continue as the range of ultra low emission vehicles on sale increases,” said SMMT chief executive Mike Hawes.
However, Hawes is less inclined to believe the current growth will carry on for long. “We anticipate a natural levelling out of the overall new car market throughout the remainder of 2015,” he said.