Motor traders will be pleased to read that the number of new cars registered here in the UK increased in November 2021 when compared with the same month last year albeit only a small rise was seen. This is the first increase seen in a period of five consecutive months.
According to the Society of Motor Manufacturers and Traders (SMMT), there was an increase of 1.7%. In November 2020, there were 113,781 new cars sold whereas in November 2021 the figure was 115,706.
Apparently, one in six new cars being registered in the UK are plug-in vehicles but, unfortunately, the number of public car charging points is not keeping pace according to analysis by the Society of Motor Manufacturers and Traders (SMMT). In fact, we are well behind a number of other countries when it comes to the number of charging points available.
Motor traders in particular will be interested to read that the number of new car registrations dropped in October 2021 when compared to the same month last year here in the UK. Obviously, this may have an impact upon various other sectors of the motor trade industry such as car parts suppliers, used car sales and servicing departments.
Many motor traders offer some form of in-house finance to customers who are looking to buy either a new or used car but a number of customers also sort out their own finance through the likes of their bank. The Finance and Leasing Association (FLA) has recently published some interesting statistics relating to both consumer and business motor finance that can be found on its website but we highlight some of the information below.
In the 12 months to the end of the third quarter in 2021, there has been a drop in car insurance premiums according to the Confused.com Car Insurance Price Index. This may also have had an impact on motor trade insurance premiums.
In the last year, premiums have fallen by an average of £97 per annum- down from £611 per annum in Q3 of 2020 to £514 per annum in Q3 of 2021. That is a fall of 16% – a sizeable sum of money that will be welcomed by consumers.
It is concerning to read that the production of engines in the UK fell in August 2021 when compared with the same month last year according to figures published by the Society of Motor Manufacturers and Traders (SMMT) especially bearing in mind that last year we were in the middle of the pandemic.
In August this year the number of engines built amounted to 81,266 whereas in August 2020 the figure was 106,398. That is a drop of 23.6%. Of that figure for August 2021, 27,797 were built for the home market and 53,469 built for the export market.
If you are involved in carrying out MOTs on vehicles you will probably be aware that there is a backlog of MOTs that need to be carried out due in part to the pandemic. It is quite possible that you have a full diary of MOTs booked over the next few weeks.
You may remember that last year the Government agreed that, depending upon when last year’s MOT was due, drivers could delay having their MOT carried out on their cars. As a result, this has meant that there are currently more vehicles that need to be MOTd than normal at this time of year due to what happened in 2020.
August tends to be a quiet month for motor traders involved in the sale of new cars as customers tend to hold back until the new registration plate vehicles come out. In August 2021, the number of new cars registered here in the UK amounted to 68,033 with this being a fall of 22.0% when compared with the same month in 2020 when 87,226 new cars were sold according to figures published by the Society of Motor Manufacturers and Traders (SMMT).
Motor traders will be interested to read that the second hand car market saw a big increase in sales in the second quarter of 2021 when compared with the same quarter last year. However, that is probably not a surprise when you take into account the pandemic.
In Q2 of 2021 there were 2,167,504 used cars sold in the UK according to figures produced by the Society of Motor Manufacturers and Traders (SMMT) whereas in Q2 of 2020 there were 1,099,303 used cars sold – an increase of 108.6%. Apparently, the figures for Q2 of 2021 were 6.6% higher than the same quarter in 2019.
You will probably be aware that a huge number of people here in the UK have had to self-isolate due to coming into contact with someone who has COVID-19. As with many other businesses, this could potentially have a negative impact on car manufacturing and the industry has asked for something to be done about this.
FAQ's
Mailing List
To get the latest news and offers from MTI, enter your email below.
