New Car Stock

New Car sales looking promising in UK

New Car Stock

In July 2020, Carwow’s new car sales rose by 10.43% in comparison to the same month last year. This of course, creates a more promising scenario for other car dealers.

However; within the last 12 months, Carwow has seen a sharp decline in sales, by 19.73%. The contributing factor would have been the nationwide lockdown that we had experienced, earlier this year, between the months of March and June. The sales figures (as seen in the table below) for alternative fuel vehicles (AFVs) have remained lower than the sales figures for otherwise traditionally fuelled vehicles. Having said this, statistically, it shows that there has been an exponential growth of 52.6% each year for sales in July. This would consist of petrol plug-in hybrid vehicles seeing an increase of 74% in sales and a sharp incline of sales for diesel plug-in hybrid vehicle sales by 55%.

Carwow’s Chief Executive Officer, James Hind has provided this following statement:

“It is still early days in terms of predicting if and how a market recovery will unfold, but our figures offer some respite for dealers adapting to the new world. This is particularly encouraging as the countdown to the September plate-change begins in earnest.

“Greater numbers of consumers are now choosing to buy online, confident in navigating the digital journey to find their next purchase and secure the deal. 

“This is great news for dealers and buyers alike. Dealers benefit from genuine leads from people intent on buying, not simply window shopping. Consumers benefit from choosing a dealer who offers a product and price that meet their criteria, whilst delivering a service that has their very best interests at heart, crucial at this precarious time.”

Meanwhile, the Society of Motor Manufacturers and Traders (SMMT) had reported that the number of new car registrations in July had raised by 11.3%. On the other hand, Auto Trader, have also reported a 25% increase in demand, last month for used vehicles, where prices had risen to its highest levels to date.

Approximately, 174,887 vehicles were also delivered to customers last month. But, new car registrations still remain at around a 41.9% decline year-to-date, with just 598,054 units.

According to the Society of Motor Manufacturers and Traders (SMMT) they expect the market to close the year, at a deficit of approximately 30% in 2019, following COVID-19’s detrimental effect; which, resulted in over £20 billion sales lost.

The Chief Executive of the Society of Motor Manufacturers and Traders (SMMT) Mike Hawes has exercised caution in the announcement of this result, by, stating that a much clearer perspective of the UK’s new car market should emerge “by the end of September”.

July’s sales have begun to surge, as car show rooms (franchised) across the United Kingdom have re-opened for business, commencing their first full month of trading. Until this point, only retailers within England were able to benefit from a full month of sales in June.

According to data produced by the Society of Motor Manufacturers and Traders (SMMT), approximately, there was a 20.4% increase of new car registrations; which, can be attributed to individual consumers. The contributing factor appeared to have been the nationwide lockdown, forcing consumers to delay renewing their cars, until restrictions had been eased.

The demand for alternative fuel vehicles (AFVs) remained steady during the month, as plug-in hybrid electric vehicles (PHEV) and full electric vehicles (EVs) both received a 9% share of registrations for July, compared to 9.5% in June, increasing from just 3.1% for 2019.

Currently, on Carwow’s league table for bestselling cars, (see table below) the: VW Tiguan, VW Polo, Mercedes-Benz GLC and Skoda Kodiaq are all solid favourites, when it comes to the car model. But, Carwow’s bestselling car in July was the Volvo XC40 model, with their bestselling car (year-to-date) being the Mercedez-Benz A Class model.

Carwow’s league table for bestselling cars.

Carwow new car sales table