The decline in sales of new cars to private customers is becoming a growing concern for car dealerships across the UK. Platts of Marlow, a Ford retail dealer, has seen a significant decrease in new car sales due to the limited range of Ford models available. As a result, their sales have dropped by 30%. Similarly, Summit Garage in Dudley is experiencing declining retail sales, leading them to consider quitting their MG franchise.
According to the Society of Motor Manufacturers and Traders (SMMT), sales of new cars to private buyers fell by 12.9% in May, contributing to an overall decline of 11.3% since the beginning of the year. Despite generous incentives, electric vehicle (EV) sales to private buyers actually fell by 2% in May, highlighting the fact that many private buyers are not interested in EVs.
Instead, private buyers are choosing to either keep their old cars or replace them with new, smaller combustion-engined models. This trend is evident in the best-selling new cars to private buyers, which include the Ford Puma, Mini Hatch, and Vauxhall Corsa.
Experts argue that the real issue facing car makers is the lack of interest in EVs among private buyers. Many individuals are not willing to abandon their combustion-engined cars and are finding it difficult to replace them with similar models due to limited options and rising prices. As a result, more people are turning to the used car market.
Sales of used cars have increased by 6.5% in the first three months of the year, reaching a five-year high. While sales of used EVs have also increased, petrol superminis, particularly the Ford Fiesta, remain the most popular choice among buyers. Auction group BCA has reported a substantial increase in active buyers and stable used car prices.
Overall, while new car showrooms are experiencing a decline in sales, the used car market is booming. Private buyers are opting for used cars instead of new ones, leading to increased sales and a wider variety of options. The top-selling used cars in 2024 include models like the Vauxhall Corsa, Audi A4 Avant, and Skoda KAROQ.
In conclusion, the shift towards used cars among private buyers is driven by limited options and rising prices in the new car market. Car dealerships are facing challenges in meeting the demands of private customers who are not interested in electric vehicles. As a result, the used car market is thriving, offering a wider range of choices and stable prices.
