Thanks to rising confidence in the country’s overall economy and boosted by cheap financing schemes, Britain’s new car sales reached last month the best figure in 10 years, according to the Society of Motor Manufacturers and Traders.
The industry association said that September’s registrations went up 5.6% year-over-year to 425,861 autos, marking the 31st consecutive month of delivery increases.
“Typically, September and March are highly lucrative months for car traders, with the two months accounting for more than a third of annual car registrations. These biannual peaks are due to the launch of a new registration plate, which occurs on 1 March and 1 September each year,” said the SMMT in a statement.
Still, the new registration plates were just one factor that contributed to the overall gains, as buyers are actually mostly supported by the country’s record-low interest rates – which lifted car sales continuously since the 2008-2009 economic crash. Around 80% of the new car purchases are through credit schemes, with users typically “renting” the car (usually for three years) and then trading it in for another new car (through what they call a personal contract plan – PCP).
According to SMMT, sales for 2014 are expected to surpass 2.45 million new car registrations, a figure that would be the highest since 2004.