Credit, Collections & Insolvency News
The Society of Motor Manufacturers and Traders (SMMT) has revealed that the number of new car sales in the UK has declined by 97% in April. Only 871 cars went to retail customers last month, with the rest of the 4,321 cars sold going to fleets or business buyers.
The figures are at the lowest monthly level since 1946, a 97% fall in sales from the same month last year.
The car industry has called for a government stimulus package and extended furlough support to help it recover from the coronavirus crisis. The SMMT has said the government will need to jump-start the sector in order to get demand going again.
SMMT chief executive Mike Hawes said“With the UK’s showrooms closed for the whole of April, the market’s worst performance in living memory is hardly surprising… A strong new car market supports a healthy economy and as Britain starts to plan for recovery, we need car retail to be in the vanguard.”
Stephen Haddrill, Director General of the Finance & Leasing Association said “While the measures to control the spread of Coronavirus are entirely necessary, the SMMT’s figures show the stark reality of lockdown not just for motor manufacturing, but also for the associated sectors that work alongside it.”
“FLA members have been providing unprecedented levels of support to customers whose income has been disrupted, but the cost of doing so is causing severe strain on firms as new lending in this market has been affected by the closure of dealerships. Our figures for March, to be released later this week, will show that consumer motor finance new business volumes fell by 27%.”
“Government help is needed to ensure that the non-bank lenders in this sector have access to funding so they can continue to support customers, but also begin lending again as we emerge from lockdown.”