Sales of new cars were down 11.5% year on year in November, however, taking into consideration the bolstering effect of the scrappage scheme, the market was “up” 14% on November 2009.

Sue Robinson, RMI franchised director, said, “Footfall in showrooms is up, according to our dealers, and for many of them November has been busier than October, which is reflected in these figures”.

“Dealers are not negative about market conditions but it’s proving tough and they’re relying on strong, robust processes to ensure sales are made, and these seem to be working”.  

“Market conditions are mixed, and brand dependent, with demand for some models outstripping availability. On these, popular models, both margins and volumes look set to be strong before the year end. However, on models where there is a lesser demand and dealers have strong stock holdings, consumers can expect to see promotion and competitive price in a final push by dealers to achieve cumulative manufacturer objectives. Whilst this is good news for new car sales, it has the potential to lower the value of a used car, and even reduce demand in the early part of 2011,” added Robinson.

“November was busier than October, and we’re hearing from dealers that specific brands are selling well, perhaps above expectations, most likely as a result of a very competitive pricing and some attractive new models.  The ever increasing cost of rail fares is pushing commuters back to their cars, and this will also help to stimulate the market,” said Robinson.