New figures show that UK car sales have failed to slow down in the period following the Brexit announcement, with sales figures up for the second month in a row.
Data from the Society of Motor Manufacturers and Traders (SMMT) shows that 81,640 new cars were registered in the UK last month, a 3.3 per cent rise over the same period last year.
This year so far, the number of new cars registered has hit 1.68 million, roughly on par with 2015, which was a record year for the industry with the biggest number of cars sold in UK history.
Fleet market buoys up sales
However, it’s the fleet market which has buoyed up sales recently whereas private buyers have apparently taken their foot off the gas, continuing a trend that’s slowly developed this year.
The industry has warned that maintaining consumer confidence is crucial to keeping automotive sales momentum going, with Brexit seen as one of the biggest bumps in the road.
Mike Hawes, chief executive of the SMMT, said: “August is traditionally one of the quietest months as consumers look ahead to the September plate change, so growth, albeit small, is good news.
Brexit a major bump in the road
“The key to maintaining this strong market is consumer confidence for which we look to government to deliver the conditions for economic growth.”
It was expected that the number of private buyers getting new cars would decline post-Brexit, but it’s possible that waning sales could have been slowed by falling interest rates.
The Bank of England’s decision to have its base interest rate to 0.25 per cent could have had an effect, ensuring that finance deals on vehicles remain attractive to buyers.