The growth accounted for new car deliveries last month has lifted total sales for the year so far to their highest level since 2007 – and that’s with another month of great sales ahead.
November’s new car registrations have climbed 8% from the figures recorded during the same period of 2013, with the tally standing at 172,327 units, said in a statement the Society of Motor Manufacturers and Traders. According to the industry body, the 11-month total has reached a little above the 2.3 million mark, which is the best figure since 2007 – thanks to continuously cheap financing options and the country’s economic recovery. The SMMT predicts that total new car sales in Britain in 2014 will surpass 2.46 million vehicles – taking it to the highest level in 10 years.
On the other hand, the pace of growth is expected to transition to a cooler increase ratio as almost four fifths of new-car buyers use credit in the UK, aided by the fact that the government has not moved the very low interest rates for years. The SMMT forecasts that in 2015 the tally would only increase modestly to 2.49 million and then remain flat the following year. Howard Archer, chief UK economist at IHS Global Insight supports that opinion, but ads that strong demand was likely to remain, as “rising employment is supportive for car sales, while recent lower inflation is helping purchasing power. Lower petrol prices can only help matters.”