Driving expert claims 'cost is the culprit' as new car sales fall for eight months in row
As fewer motorists buy a new model, a top motoring expert has called on manufacturers and the Government to cut the cost of popular models.
The leading retail platform AutoTrader has called for more schemes to be imposed to lower the cost of electric cars and encourage a growth in sales.
According to figures published by the Society of Motor Manufacturers and Traders (SMMT) sales of privately-owned cars in the UK fell by 17.7 percent during June 2024, with just 50,458 sold.
Ian Plummer, Commercial Director of AutoTrader, noted that the fall in sales is closely linked to the rising cost of new cars.
He explained: "June marked the eighth consecutive month of decline in retail sales - quite a contrast to the months of huge demand we've been tracking in the used car market.
"With average new car prices rising almost 40 percent over the last five years, it's clear cost is the culprit. Manufacturers are responding with discounts but they're failing to keep pace, which is forcing many buyers to opt for a used alternative."
According to AutoTrader, one of the biggest factors in the slump of car sales is the increase in retail costs, with many popular models rising in price over the previous years.
Overall, traditional petrol and diesel models have risen the most, with a basic Ford Focus increasing by £6,290 over the space of five years.
However, there has also been a notable increase in the cost of electric models. In July 2019, an entry-level Telsa Model 3 was priced at £36,490, around £3,500 cheaper than the same model today.
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Ian called on the Government to reinstate various measures and schemes, such as salary sacrifice, to make all models, including electric cars, more affordable.
He advised: "Whoever forms the next Government needs to address electric car affordability and provide long term stability for the market. Securing the future of the salary sacrifice and Benefit in Kind schemes is essential as these drive the majority of new electric car uptake and it will be very difficult to scale without these.
"The market for used EVs is much stronger, which shows drivers are willing to go electric when the price is right."
Nevertheless, whilst the average cost of a new car rises, models on the used market are continuing to fall. According to The AA, the typical hybrid or electric car sold during the second quarter of 2024 slumped by 20 percent.
The organisation noted that the drop in prices is being caused by an oversupply of ex-company fleet cars entering the market.
In the 12 months leading to June 2024, the typical cost of a used Nissan Leaf, one of the most popular electric models, fell by 25 percent to £12,434.
