March 2017’s stellar new car registration figures, which were up 8.4% year on year will almost certainly dent sales in the second quarter of the year. That is the view of vehicle pricing and data firm, CAP following a survey of dealers.
CAP found 79% of dealers believe that sales of new vehicles will slow down in Q2. The new VED regime will also drive high levels of tactical registrations in March, according to 76% of dealers.
Talking about the finding, CAP’s Philip Nothard, said, “It’s clear that dealers have had a bumper first quarter with strong new and used car sales. However, dealers are much less bullish about new sales the second quarter. The push on registrations in March, driven in part by the increased VED changes, appear to be a strategic approach rather than a mass registration of low-value vehicles.”
Far from being gloomy about used sales in the second quarter with 77% of the dealers who were surveyed expecting positive results. It contrasts to negative sentiment on new sales with only 25% of dealers expecting positive figures and 57% expecting a negative quarter.
Nothard adds, “Interestingly, sentiment on the impact of new VED rates on new sales in the first quarter is divided with 51% not stating it had an impact on sales. Continued strong incentive support and healthy consumer demand, is a strong influence.”
Leave A Comment