An artificial spike in new car sales is likely towards the end of the year, says industry watcher Glass’s.
The price guide chief car editor, Jayson Whittington, said, “Consumer confidence as measured by GFK’s market research survey is reported to have dropped by 11 points in July, which is the sharpest fall in 26 years.
“Clearly consumers are reporting high levels of concern at the general economy which is likely to lead to a more conservative approach to the consumption of big ticket items. The Bank of England have put in place measures to prevent further decline in the UK’s economic outlook by reducing interest rates to an all-time UK low of 0.25% and recommencing a programme of Quantitative Easing.
“Despite high levels of uncertainty it is not expected that registrations in 2016 will fall below the level seen last year. Deals currently available remain extremely attractive and could even improve further.
“There is also a likelihood that tactical registering of unsold units will become even more prevalent towards the back end of the year.”