Car sales in the UK last month shot to an all-time high, largely thanks to buyers racing to beat the changes to the vehicle tax changes, according to new data.
From April 1st this year, all new cars with the sole exception of zero-emissions vehicles have been hit with higher tax costs, but any car registered prior to that date will be taxed according to the previous rules.
As a result, new car buyers turned out in force to drive registrations up to 562,337 in March, an increase of 8.4 per cent on the same month the previous year.
Generally, March is one of the more popular months for buying cars given that the registration plate numbers update, but this March has been particularly special.
According to data from the Society of Motor Manufacturers and Traders (SMMT), more cars were sold last month than in the first two months of the year combined.
In total, 820,016 new cars have been registered in the UK this year alone, which represents yet another new record for the British car industry.
Mike Hawes, chief executive of the SMMT, said: “These record figures are undoubtedly boosted by consumers reacting to new VED changes, pulling forward purchases into March, especially those ultra-low emission vehicles that will no longer benefit from a zero-rate fee.”
On the flipside, Hawes predicts that the number of cars sold in April will be lower than the normal rate and also expects the market to cool after last year’s all-time record for car sales.
Economic uncertainty caused by Brexit could also affect sales, though previous forecasts have said the same and have, to date at least, continually been defied by buyers.
