Car sales fall for seventh consecutive month

5 December 2008

New car registrations fell by 36.8% in November, according to the Society of Motor Manufacturers and Traders (SMMT).

The figures also show that overall year-to-date volume was 10.7% down.

“November has been another difficult month for the motor industry and whilst some consumers may have delayed their purchases to take advantage of the recent VAT reductions, overall demand continues to fall,” said Paul Everitt, SMMT chief executive. “Urgent action is now required to ease access to credit and finance, both to support consumers and meet the cash-flow needs of the industry.”

As a major purchase for most households, car sales are considered a good indicator of consumer confidence with regard to spending: in the current financial climate, consumers are reluctant to make expensive purchases as they attempt to avoid falling into debt.

A debt expert for Think Money said: “A car is a big financial commitment, and people need to think carefully about making such purchases. Car buyers should consider the running costs, as well as any loan repayments, in order to avoid falling into debt in the future.”

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Tags: car, cars, car sales, sales

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