Consumer confidence still key to car sales revival

‘Consumer confidence remains key to reviving car sales in 2009, and this is where the Government must focus,’ according to Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA), representing the UK’s new car dealers, commenting on car sales for January 2009, announced today (Thursday 5 February 2009).

112,087 new cars were sold in January, 30.9 per cent down on January 2008.

Robinson continues: ‘Lord Mandelson’s support measures for the car industry, announced on 27 January, were “too little, too late” to help revive new car sales as we enter 2009.

‘Despite reports to the contrary, consumer credit is still available to those who want to replace their vehicle.There has been a vast improvement in used car sales in the last month, as consumers feeling the pinch look for great value for money on used vehicles,’ said Robinson. ‘This proves that there is still desire for a new car, and a budding confidence that must be developed.

‘Consumers are looking to the used market for value-for-money, but in many cases new cars can offer equal value equal to used vehicles, when the savings provided through warranties are taken into account.’

The RMIF is continuing to lobby for the introduction of a self-financing scrappage scheme could help revive car sales, and remove high-polluting cars from the road at the same time. The RMIF will shortly be presenting a paper to Government that puts the case for a self-financing Scrappage Scheme in the UK that mirrors those successfully adopted in other EU states.

‘This RMIF-led initiative is clearly gathering momentum,’ said Robinson.