uSwitch.com: SMMT December car sales

Mark Monteiro, insurance expert at uSwitch.com, comments on latest figures from the SMMT: "In September 2008, research from uSwitch.com found that over three-quarters (77%) of motorists claimed that the current economic climate would put the brakes on their future car buying plans. Today's figures from the SMMT show that consumers really have stuck to their guns with sales down 21.2% in December alone compared with the same month in 2007. Overall, the car industry suffered its worst year since the early 1990's.

"Driving habits are also changing drastically as a result of the downturn with over half (55%) cutting back on the number of journeys they make by car. In addition, over a third (38%) only use the car for essential journeys, one in ten motorists (11%) are now car sharing and over half (54%) drive more economically. These figures indicate that our reliance on cars to get us from A to B is changing drastically as a direct result of the downturn which is having a devastating effect on the car manufacturing industry.

Monteiro concludes: "With dealer finance also drying up, seemingly the only beneficiaries of this situation are those motorists who have the cash ready to pay for a vehicle. Although manufacturers have slashed production to reduce stock-piles in the year ahead, there are forecourts and airfields full of unsold cars and so bargain hunters should be able to negotiate some significant discounts."