Reduce motor tax burden, say car dealers

‘Uncertainty over the rising cost of motoring, along with higher overall living costs, have made consumers more cautious about buying a new car, but this could be eased if Government clarified its intentions towards the motorist,’ according to Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA), commenting on car sales figures for June 2008.

209,190 cars were sold in June, 6.1 per cent down on 2007.

Robinson believes that changes to the way that Vehicle Excise Duty (VED) is calculated, along with rising fuel costs and economic and environmental concerns have led to consumers taking a wait-and-see stance: ‘Confusion over VED changes due to come into force next year mean that it is more difficult to calculate how much motoring is going to cost. In combination with rising household costs, this means that many consumers will wait to see how the cost of motoring and the overall economy plays out over the next few months.’

She adds: ‘Consumers still want to buy cars, but the current uncertainty is not conducive when thinking about making what is for many the second biggest purchase after buying a home. Reductions in interest rates, efforts to stabilize fuel costs, and clarification over the future cost of motoring are all within the Government’s remit, and we urge them to look into these areas urgently.’