Do falling car sales mean it’s a buyer’s market?
The best online loans to purchase a new car in 2019…
During 2018, UK car sales experienced the biggest drop for 10 years.
Although 2.36 million new cars were registered in 2018, this was a 6.8% decrease from the previous year.
The fall in sales was blamed by the SMMT – Society of Motor Manufacturers and Traders – on two main factors. Firstly, uncertainty over Brexit. Secondly the shortage in supply of some vehicles resulting from the new EU testing programme WLTP (Worldwide Harmonised Light Vehicle Test Procedure) which measures fuel consumption and emissions.
Another key factor in the general fall in sales, was the sale of diesel cars which decreased by a staggering 30%. Our recent article Cheapest car to run – petrol or diesel? explored some of the reasons in the decline in popularity of diesel cars and concluded that it is essential to evaluate the best type of car for your needs.
So, what impact are falling car sales likely to have on prices during 2019? Is this going to be a good year to buy a new car?
The SMMT predicts that car sales will fall by another 2% in 2019 if there is an orderly Brexit. But, as Brexit continues to dominate our daily news, it is still uncertain as to whether this will be the case.
According to Mike Hawes, the CEO of SMMT, car manufacturers are assuming that “we will get through this, but it’s a bet …. The spread could be so huge between catastrophe … and a post-Brexit boost, you can only operate on what you see as, effectively, business as usual,” he said.
Whatever the impact of Brexit, Ian Gilmartin of Barclays Corporate Banking sees the fall in car sales as a wake up call to policymakers. It is evidence of the “urgent need” to support the UK’s car industry. Rather than being “time to panic”, he says it is important to acknowledge the positive steps being made by manufacturers and retailers to try to innovate and adapt to the changing landscape. Manufacturers and retailers who “need support from the government to encourage more new vehicle purchases and allow the industry to thrive this year.”
In the midst of all the above uncertainty it remains to be seen how the UK car market fares over the coming months – particularly with Brexit on the horizon. Certainly it is worth keeping a careful eye on the market to see how demand and supply are matching up and whether there are good deals to be had.
So if the current state of the car market tempts you to consider buying a new car in 2019, and you need some financial help with this then why not take a look at our range of online loans? At Logbook Loans our aim is to give you a quick lending decision, and this could just make the difference in enabling you to secure a good deal.
So use our online loan calculator to work out how much the repayments would cost for the amount you need to borrow, then do get in touch with us either online or by calling 0330 400 4137 and we will see what we can do to help.