New Cars Sales Figures Plunge as Car Scrappage Scheme Ends
Recent car sales figures highlighted a huge 11.5% plunge in new car sales last month compared to January last year.
The Society of Motor Manufacturers and Traders (SMMT) have confirmed the plummet in new car sales was in line with its forecast and was in part due to the end of the car scrappage scheme.
“With living costs on the rise, fuel prices jumping higher and car insurance becoming more costly, drivers are concerned about whether now is a good time for them to take on car loan credit with such an uncertain future.”
The SMMT figures revealed 128,811 new cars were sold during January of this year, marking the start of what is expected to be a challenging year for the UK motor industry.
Their figures also revealed the market share for cars with lower CO2 emissions continued to increase, rising by more than 65% in January.
Paul Everitt, SMMT chief executive, said; “Consumer confidence is low and it is important that the Government uses the March Budget to help relieve some of the financial pressure on motorists by freezing fuel duty, while providing stability and certainty on motoring taxes.”
“Despite the challenging conditions, the demand for low CO2 emitting and highly fuel-efficient cars continues to grow.”
The report showed just over 65,000 new diesel cars were sold in the UK during January compared with almost 62,000 petrol models.
“New car registrations have now fallen for seven months in a row and the industry are looking for ways to revive it,” said Mr James, of Bad Credit Loans 4 You.
Last month's rise in VAT impacted on new car sales, as well as uncertainty over the economy, although the SMMT mainly blamed last year's ending of the car scrappage scheme.
The scheme offered motorists a discount on new cars for trading-in older models and was seen as a huge hit.
In January last year, almost one in five new cars sold were through the car scrappage scheme, and the SMMT said it anticipated it to affect the market during the first six months of 2011.
Total sales volumes are now forecast to fall by 5 per cent this year, to 1.93 million.
Private car sales showed the steepest decline last month, with fleet and business sales also down, whilst demand for smaller cars also fell sharply.
Smaller car sales in particular were boosted by the car scrappage scheme and figures are likely to remain very low.
However, executive, luxury and the dual purpose sector recovered strongly according to the SMMT.
Cars built in the UK now account for 12.9% of the market which is unchanged from a year ago, while alternative fuelled vehicles matched their record share of 1.4%.
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Bad Credit Loans 4 You was formed in order to ensure people with bad credit had access to specialist help in securing the bad credit loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing bad credit loans for people with bad credit.
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Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
