New 59 number plates meet low demand
Tuesday, 01 September 2009 03:00
Demand for new cars is slowing as dealers unveil new 59 plates is low, according to new research.
As dealers report motorist waiting for some models may have to encounter waiting lists, following falling production, demand for a new car will be muted.
A 2p rise in petrol duty is further putting pressure on motorists.
Research from Sainsbury's Finance shows 5.14 million people intend to buy a car during the period of September 2009 to February 2010, a drop of 19 per cent on the last six months.
On average, buyers are looking to spend £7,590 each.
This fall comes despite the government's car scrappage scheme offering a £2,000 discount for those scrapping a vehicle that is over ten years old.
It is claimed 3.68 million people are looking to buy a second-hand car and 1.46 million want to buy a new car.
Steven Baillie, head of loans at Sainsbury's Finance said: "Our latest car buying index, which has been running now for seven years, reveals an all-time low in both the number of people who intend to buy a car and also in the amount of money they are intending to spend.
"For the first time since launching the index, we see the anticipated spend on new cars over the next half-year drop to under £40 billion."
However, he predicted a rise in sales in six months' time - in particular for second-hand cars.
"This demand seems to in turn have led to an increase in the value of second-hand cars so many people could be pleasantly surprised at how much they might get for their current vehicle when they come to upgrade it for a newer version," he said.
Figures from Experian show sales of used cars in the first six months of 2009 only down marginally on 2008.
New car sales were down 25.9 per cent.
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