March car sales defy credit crunch

‘Car sales in March experienced a boost thanks to the number plate change and consumer desire for smaller lower emitting vehicles, but the credit situation is likely to flatten the market over the next few months,’ said Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA), commenting on car sales figures for March 2008.

451,642 new cars were sold during March, 0.5 per cent up on 2007.

Small cars in the supermini class dominated the top ten in March. Robinson believes that environmental concerns and economic factors may have played a part in this: ‘The continuing economic uncertainty, combined with the increasing clamour for lower polluting cars may have influenced buying decisions.’

The sales increase seen in March may not last, according to Robinson: ‘Many of the vehicles purchased in March would have been ordered in January and February, before the most recent economic pressures came to bear. Consumers now face even higher household costs and a tighter credit market.’

She adds: ‘The Bank of England will announce its intentions for interest rates in April next week. We urge an interest rate reduction to give consumers breathing room.’