September saw over 400,000 new cars registered in the UK. This makes it the most productive month of car sales for the last 5 and a half years.
This rise in sales is nothing compared to the increase of European cars sold in China, but it at least indicates that the UK economy may be starting to recover. In the absence of government schemes, the UK car market has been stagnant in recent years.
This increase may be due to one or more of the following factors:
Consumer confidence is higher than it has been in a long time. A lot of people put off buying a new car due to fears that it would depreciate too much, or increases in petrol prices would make running it a bad financial investment
New advances in engine technology have led to newer more efficient models being readily available. This has made running a car affordable, even with rising fuel prices
Retailers have begun to offer more attractive finance offers which include things like servicing and road tax. This removes some of the future costs associated with car ownership
With the new court rulings concerning payment protection insurance rebates, a significant amount of people are being given cash lump sums. Interest rates are at a low so investing this money isn’t as attractive an offer as it has been in the past. Many people are choosing to spend their money instead of saving it.
September saw the new ‘63’ number plate come into use. New registrations typically come with a rise in sales. People tend not to buy in the couple of months coming up to a new plate release. Superstition could also play a role in people not wanting to buy ‘13’ plated cars.
A long time has passed since the government offered their scrappage scheme, which led to a lot of people taking advantage of subsidiaries and buying a new car. Many of those buyers are coming around to purchasing a new vehicle.
Although increases in sales look good for the UK economy, it is worth bearing in mind that the majority of cars sold are made outside of the country. Even so, any increase bodes well for the countries economy.
Did you buy a new car in September? If so, did any of the above factors contribute to it? Leave us a comment below and let us know.