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New car market predicted to fall by 3.5% in 2017

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The UK new car market is predicted to fall by around 3.5% next year to around 2.6 million cars, according to Glass’s.

However, the vehicle data provider was keen to point out that this will still be higher than any year in the last decade except 2016.

Rupert Pontin, director of valuations, said: “We have become used to the new car market growing on a year-by-year basis and when that stops happening, there will inevitably be a feeling of some unease.

 “However, if you look at the bigger picture, the fact is that a 2.6 million market in 2017 would still be a very good performance in recent historical terms.

 “We should certainly not be feeling as though there is any kind of crisis underway and the underlying strength of the economy will be quite good. Conditions are simply likely to become a little more difficult.”

Glass’s view is that the economy will remain relatively strong next year but that a number of effects, notably resulting from the weaker pound, would start to emerge.

“It is very likely that food and fuel prices will increase, which has an unavoidable effect on the amount of disposable cash that people have available. Importantly, the poor exchange rate also makes it more expensive to import cars into the UK.

“However, we expect to see manufacturers and dealers continue to offer some very attractive new car deals, especially based around PCPs, and for there to be a high general level of enthusiasm in the new car sector,” said Pontin.



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