Retail demand fuels best UK car sales figures for five years

Sales of new cars in the UK in 2012 topped more than two million, giving the best sales figures since 2008. Commenting on the SMMT's car registration figures Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA) which represents franchised car and commercial vehicle retailers across the UK, said: "Retail demand drove the UK car market in 2012 whilst fleet sales were flat."

The sales figures show sales rose 5.3 per cent in 2012, giving a total market of 2,044,609. Retail registrations in December 2012 increased by 12.5 per cent whilst fleet registrations fell by 0.3 per cent and small business users fell by 9.5 per cent. Alternative Fuel Vehicles (AFVs) saw a decline of 11.2 per cent in December indicating that private buyers are still not convinced of the benefits of these vehicles.

Sue Robinson continued: “The overall market for 2012 showed encouraging progress. It indicated that competitive offers by manufacturers where persuade retail buyers into the showrooms. Strong finance offers are also winning over consumers, particularly in the form of Personal Contract Purchase Plans.

“Looking into 2013 consumers will still need strong encouragement to commit to big ticket purchases such as cars. Consumer confidence is still fragile and competitive pricing and strong incentives will be important in convincing customers to buy a new car.”