Car Sales Recovering from September 09
One of the signs of the recession to many was the declining sales of the new cars market. When people have less money, they tend to purchase cars second hand, and stick with the cars they already have for much longer. This has been backed up by car factories closing and showrooms finding it much harder to generate profits. This has remained true in the recent recession.
This month, however the Society of Motor Manufacturers and Traders (SMMT) announced that the sale of new cars in September has risen by 11.4% compared to September of last year.
One of the factors affecting this may have been the new ‘59’ number plate, which went on sale on 1st September. 367,229 of them have been sold. This can’t be the only factor though; last September, the ‘58’ number plates were made available.
The SMMT believes that part of the reason the sales of new cars have increased can be attributed to the scrappage scheme. If a car over ten-years old is traded in, then the owner can receive £2000 off a brand new one. This scheme, backed by the government has had an extension announced, upping the available money from £300 million to £400 million. This extension is expected to sustain car sales well into 2010.
The top-selling car for September was the Ford Fiesta, followed by the Vauxhall Corsa, and with the Volkswagen Golf, Peugeot 207 and Mini all making appearances in the top seven. This continues the increased demand for small cars, which the recession has only encouraged.
It’s not expected that October, November or December will beat September’s sales figures, and it’s estimated that September will account for 20% of all this year’s new car sales. This is also the first time in the last five years that the number of new cars sold in September beats the number of new cars sold in March, which is when the ‘0X’ style number plates are introduced each year.
The rise in sales and the estimation of a continuation of this trend “will allow economic recovery to strengthen and safeguard valuable industrial capability” according to Paul Everitt, the chief executive of the SMMT.
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