Jaunuary 35th month Straight of Car Sale Growth
The Society of Motor Manufacturers and Traders have confirmed that the growth in new car sales has continued for the thirty-fifth consecutive month. Almost one hundred and sixty-five thousand new cars were sole, making it the highest sales in the month of January for eight years.
As we touched on in a previous article, these sales have been enabled by loan deals with historically low interest rates. Lots of customers are opting for personal contract purchases, whereby they lease their newly registered car and pay monthly toward the cost of the car. A stronger pound and weaker euro leaves British buyers a better market for European
manufacturers, too. The low inflation rate also points to a continuation of cheap credit for British consumers for the months to come, though this may not last throughout the entire year. Often the personal contract purchases run for three years, and since they grew in popularity in 2012, this year and maybe the next we may continue to see many customers upgrading to new cars and continuing to lease, rather than continuing to pay down the model of car they purchased a few years ago.
Another factor in these figures is the increased production and marketing of more fuel efficient cars, as well as cars that produce less Co2 and fall in lower tax bands. Though, while fully alternatively fuelled and electric car sales dramatically increased by sixty percent, they still only make up a very small amount of the total new cars sold. After all, another factor in this positive trend is the decline in oil prices, making running costs lower and giving eager drivers more money in their wallets to spend on a new oil guzzling machine!
It will come as no surprise that Britain’s best-selling car remains the Ford Fiesta, of which over either and a half thousand were sold, which is almost two and half thousand more than the second place Vauxhall Corsa. The Ford Focus, a car we reviewed last year, is trailing two thousand sales behind the Corsa, but still doing well and securely in third place.
All of this is very good news for manufacturers and for creditors; let’s hope that it works out well for all of the consumers in their shiny new vehicles, too.