Car buyers deserting showrooms, finance will suffer

Tue, 07 Oct 2008



New car sales in September confirmed the impact of the credit crunch on new car sales, with the new ‘58’ registration plate failing to raise the bar. Car sales slumped by 23 per cent on September 2007 figures, with consumer confidence collapsed and many buyers holding off buying a new vehicle as financial uncertainty looms.

The statistics were revealed by the Society of Motor Manufacturers and Traders, who estimated a full-year slump of 2.5 per cent on car sales this year. The chief executive of the SMMT, Paul Everitt, was reported as commenting: "Government action is now needed to restore consumer confidence and boost demand in the real economy. The Chancellor's pre-Budget report should set out a package of measures to boost demand for new fuel-efficient cars and scrap plans for unfair increases in car tax ."

Sales also appear to be divided between large, fuel-guzzling vehicles and cheaper, more economical cars. Brands such as Land Rover, Porsche and Bentley are falling, whilst cars such as the Smart car climb in popularity.

The changing trend in car purchase is sure to have an impact on car finance in the UK.
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