New Car Registrations Dropped During May 2008
It has been reported that new car registrations have fallen by 3.5% in May 2008 to just 179,272 units, according to the latest figures from the Society of Motor Manufacturers and Traders. The same figures also indicate that year to date there has also been a drop on last year to 1,038,289 units or a 0.6%.
The Motor Industry was actually expecting a tougher year in 2008 and both New Car Dealers and The Car Manufacturers had already braced themselves for a torrid time when it comes to attracting customers into the dealerships to buy new reg cars.
British households are increasingly feeling the squeeze from the current Credit Crunch with sky high prices at the diesel pumps and food and heating bills steadily creeping up. Spare funds for car finance loans are decreasing across the board.
For the first time since May 1999 there has been a downturn in private demand for vehicles with volumes down by 7,709 units.
Over the first five months of the year only the fleet market has grown. This must indicate that the business economy is holding up well in this harder economy.
Small cars are faring well and we here at Click4Gap - the premier UK online gap insurance company - believe that the small car market with the likes of BMW Mini, the Ford Focus, VW Golf, Hyundai i30, Toyota Auris, the new Peugeot Super-Mini and Fiat 500 will become even more attractive segments of the vehicle market set against a backdrop of rising fuel costs, CO2 based taxes and consumers such as yourselves who would very much like to improve their carbon footprints.
Growth in the diesel market is in our opinion more than to be expected, it is already a certainty as indicated by Diesel volumes and market share improvements during May 2008 with the Focus model by Ford taking the best sellers spot for diesels, Volkswagen Golf are still reportedly the biggest seller in this class year to date though.
Reports also sadly indicated a slowdown for the first in a long time on alternatively fuelled vehicles during May, down 8.3% which is only likely to increase should the burden on household finances improve.