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December car registrations buck usual trends

7th January 2010 Print

'With the scrappage scheme scheduled to end at the end of February 2010, private buyers have used the opportunity in the past month to both take advantage of the scheme and to benefit from the reduced 15 per cent VAT rate' Sue Robinson, RMI director, representing new car dealers, commented in the wake of car sales figures for December 2009.

New car sales for December 2009 announced today, show that new cars sold in December 2009 were 38.9 per cent up on December 2008, the sixth consecutive monthly increase.

'Latest Government figures show that 304,598 new vehicles have been ordered through the scrappage scheme since it went live. There is no doubt that the scrappage scheme has been instrumental in causing an uncharacteristic rise in December sales.

'Car showrooms in 2009 have seen the return of the private buyer, with increased footfall into car dealerships" Robinson continued, 'the scrappage scheme has tempted private buyers back into the new and used car market, this year has seen a 13.7 per cent rise in private vehicle purchases compared to 2008. However the business market is still fragile, with many fleet and business operators delaying the replacement of vehicles.'

Capitalising on this market change, Hyundai, Kia and Nissan have shown considerable sales increases. They have each gained a significant market share offering popular, small cars that are well priced, economic on fuel and cheap to maintain.

'2010 is however set to be a challenging year with a number of factors coming together to make the market difficult, with VAT back at 17.5 per cent, the scrappage scheme drawing to a close and an uncertain political landscape.'