Sharp fall in sales of new cars

Back

Motorists keeping a tight rein on spending because of higher car insurance and fuel costs have made a dent in sales of new cars, with figures having fallen dramatically over the past few months.

And figures due out next week are expected to show that even the arrival last month of the new 58 number plate vehicles has failed to kick-start the market.

Until a few months ago, new car sales had held up well compared with other areas of consumer spending.

Manufacturers took advantage of the credit crunch to push greener and smaller cars, and mounted a series of tempting offers to shift stock.

But the number of new cars sold slipped in June by 6.1%, followed in July by a 13% fall and 18.6% in August.

The total of new cars sold in the first eight months of this year is 3.8% lower than the same period in 2007, and further falls are expected until the end of this year.

The figures for September will be announced on Monday by the Society of Motor Manufacturers and Traders.

Copyright © PA Business 2008

Get a car insurance or home insurance quote now.