CAR sales did rather better in 2009 than anyone was expecting. The final figure of 1.9m took everyone a little by surprise. And the Ford Fiesta topped out the year by being the best selling model. Less of a surprise that, given what a lovely car it is.
Certainly the scrappage scheme helped – pulling car sales forward from 2010 – or I suspect, persuading some families to chop in their older cars which they might otherwise have hung onto. And the January 2010 VAT increase meant some buyers rushed to get new cars in by December.
But now, all the talk is of 2010: will it be as tough? The pundits reckon so. “New car registrations are expected to be below 2009 levels. Sustaining the progress made in the latter part of 2009 will require stronger demand from fleet and business buyers, alongside the greater availability and affordability of credit and finance,” said the Paul Everitt, chief of the Society of Motor Manufacturers and Traders.
And here’s more from John Lewis, chief of the trade body of the leasing companies, the BVRLA: “2009 saw a real slump in the business car market, which saw its share of new car registrations fall below 50% for the first time in 16 years as companies put off their buying decisions and chose to run their existing fleets for longer before replacing them.”
I suspect there’s a large degree of truth in this. Last year was the year of private buyers; this year, companies having just survived the ravages of 2009, will be looking to replace business cars.
That’s certainly the view of Martin Brown, md of Business Car Manager partner Fleet Alliance. Martin said: “Many companies put their business car buying on hold during the first half of 2009 while they took stock of exactly what was happening within the economy, and had extended leasing contracts for typically six months.
“Now that the period of uncertainty seems to be over, we fully expect company car customers to begin taking buying and replacement decisions again during the first quarter of 2010. They will be encouraged to do so by leasing companies keen to reclaim their vehicles due to the recovery in resale values that we have seen in the last two quarters of 2009.”
Talking to Paul Bulloch on Friday night, md of another of our partners – Concept Vehicle Leasing – he’s seen a storming start to 2010, which suggests business sales could be on the up.
“Usually the first weeks of January are pretty slow. But today I’ve completed on two vans and an Audi A6, while my colleagues have sold two further cars.”
I hope that Audi A6 buyer went for heated seats. I know I go on about this like some demented old codger – I’ll be wanting feet warmers next – but I tell you, in this weather, heated front seats are heaven on our Audi A6. Ask Mrs Morton. And, because you feel more relaxed – rather than tense with cold – they help you drive more efficiently, more safely, too.
Car sales in 2009…and what of 2010?
