Car sales slow down

9th July 2015

Car sales slow down

(But sales have still risen for 39 consecutive months!)

The growth in new car sales in the UK slowed to 2.4% year-on-year in May, according to industry figures. A respectable figure if it was not for the double-digit growth of the last couple of years.

When the 2.4% annual figure is compared with last March, when car sales were racing along at an annual rate of 17.7% the picture is clearer. However, the increases came after a long slowdown in sales and as cars were kept a year or three longer, eventually confidence drove a tidal wave of sales. So the starting point was very different to sales this year.

Sales now stand at a level last seen in 2005

The organisation that represents car financing businesses reports a record May for the number of car deals, but all this appears to show is the increasing trend for more and more sales to be financed with debt rather than cash.

Exports set to drive growth

The rest of the continental Europe has not experienced the same level of growth in cars sales as the UK, over previous years. So the hope is as their economies begin to show growth, people will replace older cars with new ones – just as happened in the UK.

N.B. Figures supplied by the Society of Motor Manufacturers and Traders

“I think what we are seeing is a rebalance to more ‘normal’ car sales now that the void created by the economic downturn has been filled.”

Martin Rollings, Managing Director UK Operations,
Rudolph and Hellmann Automotive

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