Comment on new car sales statistics

Asia Anwar, our account director - lending, comments on the new
car registration statistics from the Society of Motor Manufacturers and Traders (SMMT).

“While today’s SMMT figures show that new car sales are continuing to stabilise, the spectre of Brexit still looms large over the car industry, with a no-deal scenario viewed as a threat by some car manufacturers.

“With this in mind, car dealers and finance providers need to ensure that they’re carrying out sufficient affordability assessments, to protect consumers against any potential economic uncertainty that Brexit could bring. Businesses that are concerned should consider stress testing their loan book, so they can prepare proactively for any possible shifts in the economy. In addition, those that have not yet done so must improve their lending practices. This is key to creating a more robust industry with sustainable growth, whilst also protecting consumers from overextending themselves financially.

“Bans on diesel and high-polluting petrol cars on London streets, as well as rumoured bans elsewhere, have seen diesel sales continue to fall as environmental concerns play a key part in driving an increase in hybrid and electric car ownership. This is one of the leading lights of the wider car industry, and we expect these sales to continue to rise throughout the next quarter.”