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New Car Market Undergoes Continued Growth In January

By raccars Published

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The latest figures from the Society of Motor Manufacturers and Traders have revealed that new car sales were up by 6.7 per cent year on year in January of 2015, marking out the past month as another period of strong growth in the UK’s auto industry, according to Reuters.

In total 164,856 new vehicles were sold across Britain last month, which is the highest figure in eight years and a strong indication that the economic recovery is continuing to instil drivers with confidence while also benefitting manufactures and dealers.

In 2014 new car sales were up by 10 per cent, setting a record high for the decade. And SMMT spokesperson Mike Hawes said that 2015 had begun with promising signs that growth is set to continue.

Ford held onto the top spot for new car sales with the Fiesta, although Vauxhall’s Corsa managed to get within 2000 units of pipping its supermini rival to the post. Perhaps the biggest coup of the sales chart for January was achieved by Nissan, which managed to push the SUV-crossover Qashqai into fourth place, ousting VW’s Golf from this position.

Aside from the mainstream models that made waves last month, British motorists were also seen to be showing more interest in eco-friendly new car options. Sales of vehicles powered by alternative fuels were up by almost a fifth year on year. Plug-in hybrids are proving to be especially popular, not just because of their green credentials but also because they are more efficient and cheaper to run, according to Hawes.

Analysts are cautiously optimistic about growth in new car sales continuing throughout 2015, although there are signs that the current levels of expansion may not be sustainable for the full year. Whatever the case, the impact that the recession had on the market seems to have been reversed thanks to growing confidence and consumer demand for new cars in the UK is now sitting at levels that were seen prior to 2008.

The knock-on impact of this growth in new car sales is that the used car market has also seen a spike in demand, with prices rising to account for this. Some analysts warn that eventually this will lead to a minor price bubble that could burst before the end of the year, but buyers will at least be in a good position to take advantage of it.

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