New Car Sales Rocket

Published Date: 13th Jan 2014

According to recently released figures the new car sales market has received a boost from the unexpected source of PPI compensation pay outs.

According to figures released by The Society of Motoring Manufacturers (SMMT) new car sales have risen by 10.8 per cent with the number of car’s registered standing at 2.26 million for 2013. Figures show that private car buyers are driving the market with an increase of 15%; with Fleet buyer growth of 4% respectively.

The SMMT also suggested there was ‘anecdotal evidence’ that settlement from PPI claims have been an influencing factor. At an average compensation payout rate of £2,000 to £3,000 it may not be enough for a deposit on a house, but is certainly ideal for a deposit on a brand new car. The irony of the banks compensation payouts helping rebuild the economy they damaged in the first place will not be lost on many UK customers.

"With the UK economy looking increasingly positive, we can expect strong underlying demand for new cars to continue into 2014" said Mike Hawes, SMMT chief executive, though he cautioned sales might only rise 1 per cent this year.

The next generation Mini is being built by BMW in Oxford, and the Bentley SUV being manufactured in Crewe and the mark two Qashqai by Nissan designed and built in Britain. The SMMT also predicts UK production by 2017 will exceed its all-time record set back in 1972, of just under 2 million cars.

This would make Britain second only to Germany in the size of its automotive industry.

The Best Selling Cars of 2013 in the UK:

 

1. Ford Fiesta
2. Ford Focus
3. Vauxhall Corsa
4. Vauxhall Astra
5. Volkswagen Golf
6. Nissan Qashqai
7. Bmw 3 Series
8. Bmw 1 Series
9. Volkswagen Polo
10. Peugeot 208