The society of Motor Manufacturers and Traders also known as the SMMT has announced that new car sales were up 7.6% in the month of January 2014. This represents a unit number of 154,562 new car registrations compared with 143,643 last year.
We have previously reported the strong growth in the new car sector and the January figures show the continued growth seen across the UK. The SMMT is forecasting moderate growth across this sector for the rest of 2014.
New car sales were up 7.6% thanks mainly to fuel efficiency
Currently leading the growth is private registrations with a 17% increase equalling a total of 71,417 units.
The SMMT believe that as fuel economy is becoming such a big factor many motorists are turning to newer more fuel efficient vehicles rather than continuing to run older models. It has been suggested that new models are 27% more fuel efficient than a seven year old car. It is expected this demand will continue to stimulate moderate growth for the rest of the year. As the general signs of improved consumer confidence continue more people will think about making that investment in a brand new vehicle.
Recently on BBC Radio 4 it was suggested that the new car sales were up due to the increase in payment protection insurance payouts. This is an interest idea as with industry experts suggesting average payouts range between £4,000 – £10,000 these are the ideal amounts of money to invest in a deposit for a brand new car.
The figures from the SMMT also show that alternative fuelled cars increased by a 25% compared to last year. This includes hybrid models and electric vehicles. Currently the government offers a £5,000 grant as incentive for people to buy 100% plug in electric vehicles.
In terms of standard fuels diesel new registrations were more popular than petrol with 51.4% of new vehicles fitted with a diesel engine.