Monday, 6 December 2010

New Vehicle Sales Production

After the 5th successive monthly fall in New Car Registrations in the UK, with November 2010 seeing an 11.5% fall against November 2009.

Is it really as bad as it seems, are we heading for a double dip recession led head first by the car industry?

The headline figures would certainly suggest that, but dig a little deeper and things start to look a lot more rosy, well you can see the bulbs at least.

Last years figures are heavily distorted, largely due to the government scrappage scheme. Anyone with a car older than 10 years old, could get £1000 from the government, this was then matched by the manufacturers with another £1000. If truth be told the cars sold in the scrappage scheme more often than not were the low end of the market. People trading in a 10 year old car were very unlikely to buy a BMW 3 series or Audi A4, but very likely to buy a Fiat Punto or Vauxhall Corsa. If the effects of the scrappage scheme was stripped out then actual like for like sales would show something like a 14% increase according to the SMMT.

Fleet sales are up 6% with many companies trying to upgrade their fleets before the VAT rate rises to 20% in January. Also as many of the cars produced in the UK are now exported to Europe further good news in that actual car production was up 31% against the same period in 2009.

So lets look at the positives:
Higher value cars now being sold versus the low value cars in the scrappage scheme.
Like for like sales up 14%
Fleet sales up 6%
Exports up 31%

Things all of a sudden start to look a lot better, so sell your car, buy a new car and lets start getting the country moving again instead of wallowing in self pity!

In 2011 used cars will be in high demand, both from the public and dealers wanting to supply those cars, if you are thinking I want to sell my car, make sure you go to the right place and get a few valuations on your car before committing to anything!

Car Arena will work hard to get you the best possible price for your car.

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