New car sales down 17.5% in August

New car sales fell 17.5% in August compared to 2009 figures, as the end of the cash for cars scrappage scheme continues to discourage new car buyers.

According to Society of Motor Manufacturers (SMMT) figures quoted by BBC News, 55,305 new cars were registered in August this year, which represents a 17.5% fall on August 2009.

It is the second consecutive month that car sales have fallen compared with a year ago, although August is traditionally seen as a quiet month as buyers hold out for the launch of new registration plates in September.

"Some people who are thinking of buying a brand new car may decide to in September rather than later this year or in March, when the next new number plate comes in, due to the VAT hike in January," Howard Archer, an economist at IHS Global Insight, told The Guardian.

Despite the poor sales figures for August, the first seven months of 2010 saw the new car market surpass 2009 figures by 13.2%, with more than 1.3m new vehicles registered.

News of the decline in new car sales is likely to please used car dealers, as those who are unable to buy new are likely to look for older vehicles instead. Potential buyers may also be tempted to sell their current cars to fund a more fuel-efficient model, lured by the government's new £5,000 green car incentive.

SMMT chief executive Paul Everitt remains confident that 2010 sales will eventually rise above 2009 figures. "The industry enjoyed a better than expected first half of the year and, despite the difficulties, the SMMT is forecasting that new car registrations will close just ahead of 2009 figures," he told The Financial Times.

 

Chris & Clare Beddoes, Worcester, Chevrolet Kalos

Doug Noble, Edinburgh, Renault Clio