The UK motor trade industry has witnessed its 30th consecutive month of growth as new car sales increased by 9.4 per cent in August.
The figures, released by the Society of Motor Manufacturers & Traders (SMMT), show that 72,163 new cars were registered last month. In 2014 to date there have been more than 1.5 million new vehicles bought, a 10.1 per cent rise on this time last year, which has in turn bolstered the used car market as people look to trade in their older vehicles.
The booming motor trade sector is certainly great news for dealership businesses but, as a word of caution, it is always important they consider the implications on their motor trade insurance policy. Whether it’s hiring more staff, expanding the business premises or storing more vehicles on site, all these things can have an effect on the level of cover companies will need – so dealers must check that they have the right policy for the changing demands of their business.
The almost double digit increase in sales last month comes despite August traditionally being one of the quietest periods for car registrations, usually accounting for just three per cent of the annual market. September is expected to be a far more active month, typically making up 18 per cent of the year’s sales.
Mike Hawes, SMMT chief executive, commented on the findings: “New car registrations reached two-and-a-half years of consecutive monthly growth in August, as confident private and fleet consumers continued to snap up enticing deals on a wealth of advanced new products.
“The UK’s performance in the context of Europe is particularly impressive, with growth consistently ahead of the rest of the EU for the past two years. As the UK market starts to find its natural level, we expect to see the growth level off during coming months, however.”