Weak economy hits sales
April 6th, 2009 by Richard Aucock
CAR sales are suffering as a result of the weak UK economic conditions, say the country’s car dealers.
The RMIF says March’s decline of 30.5 percent is entirely down to consumers lacking confidence because of the economy.
‘Car dealers are the front line of the car industry, and are seeing that consumer car buying patterns are still being affected by the ongoing economic situation,’ said RMIF director Sue Robinson.
This is clearly apparent in the sector that’s still holding up – used car sales. It proves that value for money is now car buyers’ overriding criteria.
‘While new car sales in March were still well below the numbers seen in 2008, according to our car dealer members, used car sales in March 2009 were still extremely robust.’
But it’s buyers who could risk missing out, she says. ‘We urge consumers to take advantage of the many great deals currently available on new cars.’
Of course, things would be further aided by a new car scrappage scheme. This is seen as imperative, says Robinson.
‘Consumers will look to new cars again, given the right impetus, and the RMIF is continuing to lobby for the introduction of a scrappage scheme that could help revive car sales, and remove high-polluting cars from the road at the same time.’
It certainly has the vote of car dealers, she says.
‘The RMIF will be presenting a paper to Government in the next few days, that will provide a working framework for a vehicle scrappage scheme in the UK, that mirrors those successfully adopted in other EU states.
‘This RMIF-led initiative is clearly gathering momentum.’
SCRAP SCHEME NOW: A call to arms
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New car sales down 30% in March
Tags: economy, new car sales, SMMT
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