Car Registrations in September | Classic Car Finance UK
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Predictions for September’s new car registrations

A lot of our clients have a classic or sports car as a weekend hobby or financial investment, but still use Fast Car Finance for their new car finance when they purchase a new car to use for travel to and from work. This is because they can secure a more competitive car finance deal through an independent car finance specialist because we have access to a wider panel of lenders compared to a traditional car dealership.

New Car Registrations and the Pandemic

However, there is no doubt that the coronavirus pandemic has hit the automotive sector hard which has had a huge impact on new car registrations.  In a recent article in Quality World, Rob Brown, Global Head of Automotive at BSI discusses the impact of Covid19 on the automotive industry:

“There is no doubt that the coronavirus pandemic, and consequently the unprecedented closure of manufacturing plants across the world, has had a far-reaching impact on the automotive industry. Furlough, closure, consolidation and downward forecasts are sadly all common words and phrases used in conjunction with today’s global automotive sector. In the wake of the coronavirus pandemic, production has slowed or stalled completely, and original equipment manufacturers (OEMs) have had to rethink and reschedule new vehicle introductions as new vehicle demand almost halts.”

You can read the full article (on page 44) here.

However, on a more positive note, the BBC has reported that new car registrations have risen for the first time in 2020 in July. Research released recently has suggested that reopening dealerships in early June led to a 11.3% uplift in new car registrations (174,887 vehicles) however, year to date registrations are down 41.9% and the prediction is that registrations will be down 30% by the end of 2020. This is a staggering £20bn of lost sales, which will hit the automotive sector hard.

How Will This Impact New Car Registrations in September?

Fast Car Finance MD Andy Wise is fairly optimistic for September. He says: “It’s clear that the lockdown had a massive impact on new car registrations. Not only were the car dealerships closed, but manufacturing plants were closed or operating at reduced capacity which slowed down production. From a supply chain perspective, it would have been harder for the car manufacturers to get hold of the parts that they needed to build the cars if other factories and manufacturers were working on reduced capacity. However, there are now measures in place to keep manufacturing workers safe and to protect the spread of the virus in close quarters, so I’m hopeful that things will improve in this highly valuable sector for the UK economy.”

“From a consumer perspective, I think that many prospective buyers will choose to wait for a September 2020 registration (70 plate) because they weren’t able to get their 20 plate in time. Whilst sales of 20 plates were very low, I do believe there will be a significant uplift for September onwards, which will be a much-needed boost for the automotive sector and the economy.”

“Given that people are also spending less; fewer holidays abroad, less opportunity to dine out and they have perhaps taken advantage of a mortgage holiday, I think that more people will choose to invest in a new car, especially as interest rates are low and likely to remain low.”

Best Options If You Want to Change Your Car?

Car dealerships will provide huge incentives for consumers to get the market moving again. For example, Land Rover are offering up to £10,000 deposit contributions, which is substantial even for their model range. Audi is also offering a £5,000 deposit contribution for their A5 model. For people looking for a more economical car or a light commercial vehicle, Ford has come up with a cashback/payment deferral scheme to help people to buy a new car or van, but as this article cites, few car dealerships have actively helped people who are struggling to make their car finance payments during the pandemic. If you need finance for commercial vehicles, then our sister-company TVAF will have lots of information about how you can get competitive asset finance for Light Commercial Vehicles and Vans.

It strikes a note of caution and perhaps underlines the vital role an independent finance broker can play when things go wrong as they have for many due to COVID19. We can talk to the lender on your behalf and assist with any forbearance that may be sought. Just pick up the phone to us – there’s no call centre or webchat to contend with.

However, if there is an influx of new 70 plate cars being purchased, that means there will be a similar flow of second-hand cars in to the market, which could be a better opportunity for many people, in particular anybody who wants to purchase a sports or luxury car that has already taken a hit on new car depreciation. As an example, one of our clients recently saved £25,000 by purchasing a Range Rover Sport that was just 8 months old, a huge reduction of the £84,000 list price.

Interestingly, the latest used car price data shows an increase in vehicle prices; an indicator that demand is perhaps outstripping supply.

However, if a classic car is more your thing and you want to know more about owning a classic or high value car, take a look at this article which talks about how classic cars make brilliant investments!

To find out more about new, used or classic car finance, please contact our team on 01635 785 400 or email info@fcfinance.co.uk to book an initial call with us.

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