Deloitte comments on SMMT new car registration figures has been saved
Deloitte comments on SMMT new car registration figures
5 November 2019
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.”
Notes to editors
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.
Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.
Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.
The information contained in this press release is correct at the time of going to press.
For more information, please visit www.deloitte.co.uk
Member of Deloitte Touche Tohmatsu Limited