The UK Car Market Continues to Recover

Posted on 16 May 2013 by Tony Santos

The UK Car Market

The UK car market continues to recover, according to the latest figures from Britain’s leading auto trade associations, meaning that if you’re in the market for a car, you’re not in as bad a position as you may have been this time last year. March marked the 13th consecutive month that has seen a rise in sales – although the number of cars sold still remains below the levels seen before the recession hit the UK.

The volume of new cars now matches that of 2010 when the government’s Scrappage Incentive Scheme encouraged people who’d had their car for over 12 months to scrap it and buy a new one. Interestingly, this surge in the market has also seen a strong demand for private registrations, although registrations in all types of sales rose significantly in March, notably the Mini and MPV segments, according to the SMMT.

Despite the ongoing economic concerns, the new consistent growth in the market is encouraging, showing signs of slowly but surely returning consumer confidence. The latest technologies and new models on offer attract new car buyers, making the latest UK figures far removed from the current EU trend, which remains downward. Demand fell 3 per cent in Germany and there were even worse declines in France, Spain and Italy. According to the SMMT, UK new car registrations out-performed expectations in March, which was the first month of the new 13-plate. The market increased by more than 5 per cent on March 2012 to almost 395,000 units.

So far the biggest seller has been the Ford Fiesta, followed by the Vauxhall Corsa and the Ford Focus. The growth is extremely promising and excellent news for the UK market. However, there is still reason to be cautious about this new growth as 2013 proves to be a tough year for families with child benefit cuts and an increasingly feeble economic recovery.

Perhaps surprising were the record increases in diesel sales as diesel cars took a record share of the market. Electric cars are on the rise too as consumers seek a cleaner, greener alternative to fuel. The electric car market hints at a new change in consumer attitudes, boosted by government incentives to those who consider driving them. Motorists fed up of high fuel prices are becoming more and more interested and accepting of the prospect of an electric car. This new attitude is sure to drive sales up even further in the near future.

Interested in a new car for yourself? You don’t have to worry about guaranteed car finance in the newly surging market. Stop driving around that old hunk of metal and get yourself in gear with a new car with the help of a new car loan.

Categorized | Car News

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