As widely expected, new car registrations were down 19.8% in April 2017 compared to the same month the year before, with most commontators blaming change to VED rates, which came into force on 1 April 2017.
The Society of Motor Manufacturers and Traders (SMMT) figures indicate that 152,076 new cars were registered in April, with numbers down across the board. Registrations by private buyers, businesses and large fleets fell 28.4%, 21.0% and 12.3% respectively. Petrol, diesel and alternatively fuelled vehicle (AFV) registrations also declined, with AFV demand down for the first time in 47 months, albeit by a marginal -1.3%.
Overall the 2017 market is positive with registrations in the first four months up 1.1% year-on-year to 972,092 – the highest level on record.
Commenting on the numbers, Mike Hawes, SMMT Chief Executive, said, “With the rush to register new cars and avoid VED tax rises before the end of March, as well as fewer selling days due to the later Easter, April was always going to be much slower. It’s important to note that the market remains at record levels as customers still see many benefits in purchasing a new car. We therefore expect demand to stabilise over the year as the turbulence created by these tax changes decreases.”
Prompted by the negative figures, dozens of firms, mostly from the world of motor finance sent Motor Trade News reaction comments. Most were pretty bland, so we won’t bother you with them, however, Graham Hill from the National Association of Commercial Finance Brokers (NACFB) thought the drop in private registrations was too big to be explained by the march pre VED rush, saying, “I suspect a growing tide of adverse press around Personal Contract Purchase (PCP), culminating in the announcement that the FCA is to investigate potential mis-selling of vehicle finance, may also have been a contributing factor.”
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