Deloitte comments on SMMT new car registration figures

Michael Woodward, UK automotive lead, Deloitte, said:

“New car registrations fell -6.7% compared to the same time last year, as consumers and businesses display continued caution.

“Concerns about personal finances and a fall in consumer confidence in the third quarter mean many are shying away from major purchases. According to Deloitte’s latest Consumer Tracker data, just 4% plan on purchasing a vehicle in the next three months - the lowest level recorded in the Tracker’s nine-year history.

“That said, it is encouraging to see consumer confidence in new technologies increase, as sales of electric and hybrid vehicles reached a market share of 9.9% this month. We expect sales in this area to accelerate next year, as the incoming 0% company car tax rate on zero emission vehicles comes into effect.

“The long-term decline in overall sales however, and the impact it is having on the residual values of stock, also means that dealers are becoming less inclined to pre-register cars. This has been an important driver of new car sales in the past, but exposes dealers to financial risks they are no longer willing or, in some cases, able to take.

“In the face of falling sales, rising costs and increased competition from personal leasing companies, some dealers will increasingly need to think of innovative ways around financing and leasing, and online sales, to serve the changing consumer.”

End

Notes to editors

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