New Car Sales Decline Once Again

At least one positive side effect of the current slump in new car sales is that the market is extremely competitive.

There does not seem to be light at the end of the new car sales tunnel yet.  In November the number of new cars sold dropped once again - this time by 4.2%, compared to November last year.  According to the Society of Motor Manufacturers and Traders 134,027 new cars were sold last month.

 

This means new car sales for the year to date are 4.5% down compared to 2010.  Total sales for the year are expected to be nearly 1.94 million, which is marginally higher than the expected figure of 1,923 million.

 

To put things in perspective: this is still about 20% lower than what sales were before the recession hit the market.

 

The SMMT says that the situation would have been much worse if it had not been for a 7.5% increase in fleet sales.  Private sales in effect showed a decline of 16% for the year to date and so did sales of business vehicles.

 

Analysts say the figures underline the current weak level of demand from private buyers and even businesses.  This, they say, is mainly caused by bleak economic forecasts making both individuals and businesses wary of making long term financial commitments.

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