Jump to content
House Price Crash Forum
R K

New Car Registrations Have Biggest Month In A Decade

Recommended Posts

http://www.smmt.co.uk/2014/04/new-car-registrations-march-14/

  • Demand for new 14-plate sees March reach 464,824 new car registrations, a rise of 17.7%.
  • Since move to twice-yearly plate change in 1999, only March 2004 saw higher registrations (at 466,954).
  • Year-to-date registrations up 13.7% to 688,122 units.
  • March is typically biggest month in year accounting for almost a fifth of full-year registrations.
  • Biggest-ever month for alternatively-fuelled vehicles as volumes reach 8,713 units, growth of 63.8% on 2013.
  • Segments: Market has shifted towards smaller cars (Mini and Supermini segments) and Dual Purpose and MPV segments.
  • Fuel efficiency: Average mpg has improved 35%, from 42.4mpg to 57.2mpg, since March 2004.
  • CO2 emissions: Average new car CO2 emissions are 26% lower than a decade ago. In March 2014, 67.2% of the market was below 130g/km, so paid no VED in the first year, compared with 6.5% in March 2004.
  • Colours: White was the most popular car colour in March 2014, compared with silver in March 2004.

Boom boom boom boom

Share this post


Link to post
Share on other sites

Seriously, has anyone worked out who is buying all these new cars? I thought the average wage in the UK was around £23,000 a year.

Share this post


Link to post
Share on other sites

Seriously, has anyone worked out who is buying all these new cars? I thought the average wage in the UK was around £23,000 a year.

Probably mostly bought on hire/purchase, as it used to be called.

Share this post


Link to post
Share on other sites

Seriously, has anyone worked out who is buying all these new cars? I thought the average wage in the UK was around £23,000 a year.

seriously, I have seen ONE out on the road...the rest are at the dealers.

prolly see dozens today.

Share this post


Link to post
Share on other sites

Seriously, has anyone worked out who is buying all these new cars? I thought the average wage in the UK was around £23,000 a year.

Probably mostly bought on hire/purchase, as it used to be called.

Share this post


Link to post
Share on other sites

Probably mostly bought on hire/purchase, as it used to be called.

HP is very old fashioned these days.

What you do now is PCP:

- Advance rental of 10-20% of the official price (About the average PPI payout)

- 4 years rent at a cheap-looking price (Say £150-200/month)

- Final option to purchase with a great big final lump sum. (With assorted fines and charges for mileage, damage, whatever)

It's surprisingly similar to an IO mortgage - keeps the monthly payments very low, but you lose the deposit and at the end of the term you don't own anything unless you make a huge payment.

(I'm incredibly old-fashioned as I prefer to pay for my next car out of savings. Which is probably why I always seem to have such an old banger compared to most..)

Share this post


Link to post
Share on other sites

Probably mostly bought on hire/purchase, as it used to be called.

Leasing seems to be the way that most people 'buy new' these days, in fact it has turbocharged (no pun intended) new car sales as people find it relatively 'affordable' to lease something new versus having to save up to buy it or even take on a regular car finance loan. They will just look at monthly payments and go 'I can afford that' rather than look into the overall cost vs buying something cheaper and keeping it longer. And of course you've just got to have that new car to show to your neighbours how successful you are ...

If you are going to change to a new car every three years, it's not such a terrible idea (though it still costs more than buying/selling) but of course unless you have the means to be able to afford the large costs then getting a new car every three years is a pretty horrible idea, financially speaking. Certainly not something the average person should be thinking of doing if they actually want to run a balanced budget. But hey ho, it's only debt.

Share this post


Link to post
Share on other sites

Seriously, has anyone worked out who is buying all these new cars? I thought the average wage in the UK was around £23,000 a year.

Since we have been experiencing new car price deflation for the last 5 years and we are being used as a dumping ground for the Eurozone over production then a new car might make sense.

You couldn't pick these up for under 7k when they were first launched ten years ago......

http://palmerscars.co.uk/peugeot-watford/new/peugeot/107/car_10-active-3dr_10237.html?gclid=CMjQ8dG8xr0CFW7MtAodXH0AMA

Share this post


Link to post
Share on other sites

Excellent news, I will be in the market for a older model used car soon.

The more stock on the market the better IMO. The beauty of the UK being left hand drive is that very little used stock is worth exporting with the exception of exporting Ireland.

Share this post


Link to post
Share on other sites

Since we have been experiencing new car price deflation for the last 5 years and we are being used as a dumping ground for the Eurozone over production then a new car might make sense.

You couldn't pick these up for under 7k when they were first launched ten years ago......

http://palmerscars.co.uk/peugeot-watford/new/peugeot/107/car_10-active-3dr_10237.html?gclid=CMjQ8dG8xr0CFW7MtAodXH0AMA

Thats incredibly cheap - I bought it's predecessor model secondhand (one year old) for £6k a decade and a half ago and considered I had got a good deal at the time ...

Share this post


Link to post
Share on other sites

Seriously, has anyone worked out who is buying all these new cars? I thought the average wage in the UK was around £23,000 a year.

Nice chart in the report suggesting the biggest increase over last 10 years (comparison period) has been at the lower price range. As cars need replacing poorer Brits are clearly 'downsizing' and buying on PCPs.

Car-3.jpg

Share this post


Link to post
Share on other sites

IMHO a clear sign of how rampant HPI has been is the number of houses 'worth 500k' with sub 10k cars in front of them. Surely if the owners' incomes were high enough to afford the houses at today's prices, they could afford cars worth ~10% of the value of their houses ?

Share this post


Link to post
Share on other sites

IMHO a clear sign of how rampant HPI has been is the number of houses 'worth 500k' with sub 10k cars in front of them. Surely if the owners' incomes were high enough to afford the houses at today's prices, they could afford cars worth ~10% of the value of their houses ?

Share this post


Link to post
Share on other sites

PPI refunds, nothing else really. A lot of the cars sold in March on '14' plates will have been preordered using PPI refunds in the last few months.

The car industry is wary of a glut of PCP returns starting in 2015 or so, according to a presentation I saw linked here a while back. It'll only get worse given the ramp up in PCP recently. Most are sold on 2/3/4 year terms so it is easy to imagine plenty of decent used deals around in a few years. Problem is that currently used prices at all levels are being propped up.

Some models eg MINIs and those snazzy Citroens, are sold on PCPs in around 90% of sales.

Share this post


Link to post
Share on other sites

LIAR AUTO LOANS.

I was offered an auto loan to get my replacement last year....simply a credit check and a signature.

Share this post


Link to post
Share on other sites

PPI refunds, nothing else really. A lot of the cars sold in March on '14' plates will have been preordered using PPI refunds in the last few months.

The car industry is wary of a glut of PCP returns starting in 2015 or so, according to a presentation I saw linked here a while back. It'll only get worse given the ramp up in PCP recently. Most are sold on 2/3/4 year terms so it is easy to imagine plenty of decent used deals around in a few years. Problem is that currently used prices at all levels are being propped up.

Some models eg MINIs and those snazzy Citroens, are sold on PCPs in around 90% of sales.

Wonder if these are reflected in the guaranteed future values though? You'd imagine they would be but I've been looking at VW GFVs and they appear to be around 45% after 3 years. 3 year PCP then buy the thing for cash keep it a further 3 years then sell it (i.e. 6 yrs in total) and these cars virtually pay for themselves. Keeping them beyond that 6 yrs or so period is no cheaper than buying new again (all else equal).

There seems to be a rather happy confluence of factors which make current new small cars quite attractive, which is possibly one factor in the 128% over last decade.

Share this post


Link to post
Share on other sites

People on the forum convinced me the car-scrappage scheme... 2009, panic in the car-industry, constant boom just slowed.. was bringing forward demand from the future.

Ah well. As we all know home owners were bailed out. New cars woot.

Thought HTB1+2 was advancing badly positioned buyers to outbid more prudent non-owning saver/renters, also set to hit falter, but not so sure now. Always new schemes to beat down hated younger savers.

It's almost surreal.

A debt led recovery of a debt fuelled bust.

:lol::angry:

Share this post


Link to post
Share on other sites

It's possible that property ownership getting so far out of reach for so many may result in them just p*ssing the little deposits they had away on toys and holidays.

Share this post


Link to post
Share on other sites

Guilty!

Helped my elderly mum choose a brand new car (well she would only have a Nissan Micra but had a fun couple of days test driving). She managed to get a good deal- cash- with three years servicing thrown in. Ideal for her as the old car was beginning to go wrong. So for £7000 she has bought herself three years of vey low cost motoring (petrol and £30 road tax) and a number of years hopefully hassle fee motoring. As she says, "it will see me out".

Share this post


Link to post
Share on other sites

Seriously, has anyone worked out who is buying all these new cars? I thought the average wage in the UK was around £23,000 a year.

I may have a pertinent revelation here having just bought a 63 plate from the car supermarket at Newport.

I was surprised at the number and range of cars that they had all virtually new.

I was told that the standard procedure now is that they have a relationship with a car lease firm who lease only for 2 to 3 months and then sell the cars on to MP**NT.

This means that the VAT on purchase price of these new cars is reclaimed by the lease hire company and in effect virtually new cars are dumped on the market VAT free.

I paid £8000 under new value for a 4 month old top of the range with only 6k on the clock.

Share this post


Link to post
Share on other sites

It's possible that property ownership getting so far out of reach for so many may result in them just p*ssing the little deposits they had away on toys and holidays.

When I first bought a house in the mid eighties it cost me 18k and a small car was around 6K....~I used to think the 3:1 ratio was crazy. Same house would now be about £140k , car would be 7k (as previously linked) but would now last for twenty years as opposed to being a corroded mess within 5 years.

Massive real car deflation, massive house hyper-inflation.

Share this post


Link to post
Share on other sites

I may have a pertinent revelation here having just bought a 63 plate from the car supermarket at Newport.

I was surprised at the number and range of cars that they had all virtually new.

I was told that the standard procedure now is that they have a relationship with a car lease firm who lease only for 2 to 3 months and then sell the cars on to MP**NT.

This means that the VAT on purchase price of these new cars is reclaimed by the lease hire company and in effect virtually new cars are dumped on the market VAT free.

I paid £8000 under new value for a 4 month old top of the range with only 6k on the clock.

Yes, I`ll probably buy something like that in a years time when my 20 year old Nissan (import) finally bites the dust.

I fancy a Renault twingo with the engine in the back! Maybe 7 or 8 thousand...

In a years time the market should be a bit crowded.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   211 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.