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Back to Motoring news

Motoring news

New car sales still sliding, but used cars up

06/02/2009

Sales of new cars fell by nearly a third (30.9%) in January compared to the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).

The trade body says that there were declines across most types of car, with only the mini segment showing an increase, of 40.8%.

It also said that, at 45.6%, the share of the market for diesel cars rose to its second-highest ever.

The SMMT expects the overall market to decline by a fifth in 2009. Pressure to discount new vehicles in the UK is being countered by the sharp decline in the value of sterling versus the euro.

Earlier this week, both Ford and Vauxhall confirmed that they were increasing prices in the UK, despite the slackening of demand.

However, there are signs of recovery in the second-hand market, with one body pointing to "historically low" prices for used cars.

Valuation experts EurotaxGlass's said that compact MPVs such as the Citroen Picasso and Renault Mégane Scenic have declined the most, with three-year-old petrol versions trading for around 31% less than they would have been two years ago.

"The good news for consumers is that the falls in trade values are being translated into lower asking prices on the forecourt," said Adrian Rushmore, managing editor at EurotaxGlass's.

"There have been clear signs over recent weeks that retail demand has improved as a result.

"Values are now at historically low levels, and dealers across the UK are hoping that this will continue to provide much needed stimulus to sales over the coming months."

However, figures published by British Car Auctions suggest that prices are already moving upwards, with modest increases noted over the past three months.