UK Car Market Still Buoyant, Says Report

The much publicised “credit crunch” which has seen interest rates rise sharply this year has not scared off UK car buyers, says ACF Car Finance. The UK market came in at 419,000 units (+1.3 per cent) in September, which is thought to have been spurred on by the new registration plate which pushed private retail sales up by 1.5 per cent. The UK market performed better than was expected, despite fears of a slowing economy and the increased cost of borrowing money.

A spokesman for ACF Car Finance said: “Despite predictions that the car sales would fall in light of the recent credit crunch, we have in fact seen a small increase in the market. It’s impossible to know what will happen over the next few months, and yes, car credit may be affected along with other forms of borrowing, but we’re hopeful that the car retail industry will continue to prosper”.

Car sales and related markets such as car finance have seen steady growth in Eastern Europe and Asia, in line with the rapidly developing economies of these areas.

Poland has seen growth of 19.6 per cent compared with last year; Indonesia has seen a rise of 20 per cent and Russia claims to have experienced a massive rise of 50 per cent in September. Similar stories are being reported in China, Vietnam and Korea. Increased infrastructures and a rise in the standard of living and more disposable income, are leading to a greater number of people being able to afford to buy a car.