Motor Industry Spending Spree Predicted!
Motor Industry says UK MOTORISTS are expected to go on a spending spree with the new 14 plate arriving next month. Industry experts predict a continuing sales surge as confidence in the economy improves. This week’s January sales figures pointed the way with 154,562 new vehicles registered — up 7.6 per cent on January last year, reports the Society of Motor Manufacturers and Traders.
Top-sellers in January were the Ford Fiesta and Focus, Vauxhall’s Corsa and Astra and the VW Golf and Polo. This looks likely to repeat itself in March.
Why the spending spree?
Analysts are gung-ho on the back of rising consumer confidence, cheap credit and a desire to buy a more economical car.
John Leech, head of automotive at accountant KPMG, predicted a further sales surge of around 5 per cent.
He says: ‘The recent strong UK car sales were maintained in January driven largely by cheap finance offered by car manufacturers, bolstered by continuing PPI claim payouts and substantial fuel cost savings from switching to a new car. These elements are likely to remain in place in 2014.’
At Moody’s Corporate Finance Group, vice-president and senior analyst Andreas Rands says: ‘We expect UK new car registrations to grow in 2014 as a result of further anticipated strengthening in the UK economy.’