Posts Tagged ‘Car Sale’
New car sales have been performing well all year and in September recorded their highest figures for over five years. According to the SMMT – Society of Motor Manufacturers and Traders sales for this period were up 12.1% to just over 400,000, which followed on from a strong performance during August, showing growth of 10.9% following an increase of 12.7% in July.
This month-on-month increases mean that the industry has now seen around 19 months of rising sales and the strength of the industry is widely acknowledged as being one of the reasons why the UK has managed to avoid a triple dip recession.
September is always seen as a key month in the motoring calendar as a new registration is released, and September 2013 represents the largest total since before the recession began to bite back in March 2008.
Improving economy thought to be primary reason
The improving employment record, as well as the upturn in the economy, has led to increasing consumer confidence, meaning bigger ticket items are once more being bought by many consumers. Along with the ongoing rise in the sale of cars, mobile phone sales and increasing demand for restaurants and hotel bookings has helped keep the economy buoyant.
Interestingly consumers are still watching their purchases as industry insiders reveal that there has been an increase in the sale of more fuel efficient cars and a higher uptake of special offer and packages. Some say that September marked consumer confidence, hitting a 70-month high, which is particularly good timing considering the release of the new registration at this time.
Add to this the fact that many consumers had been put off purchasing a replacement car during the downturn, meaning that for some looking to buy a new car will climb back up their priority list in the coming months.
New car registration documents are sent the DVLA in Swansea and should be posted to their new owner within around three weeks of a car purchase. If for any reason they have not been received within this timeframe it is worthwhile finding the DVLA contact number to follow this up and chase the documentation.
Mis-selling of payment protection
Industry experts also point to the huge levels of compensation received by consumers from the mis-selling of payment protection policies as offering a further boom for new car sales figures. Around £11.5 billion of compensation is thought to have been spent so far on new cars.
Sales levels may plateau
Some are warning though that these increases in sales may well begin to level out as the ability for consumers to continue to borrow starts to drop off. Consumer price inflation stood at around 2.7% in August, while yearly earnings growth only managed 1% and the ability for consumers to continue to splash out on new cars may become hindered under these circumstances.
However, the amount of disposable income available to households has risen by 1.5% quarter on quarter, so it is not all bad news and consumers may well continue to feel confident to spend on big ticket items. The industry certainly is hopeful that the continuing upturn in the economy and dropping unemployment levels will mean sales continue to rise.