It’s been a difficult few years for the UK car manufacturing industry. Sales of new vehicles were unsurprisingly hit during the economic downturn, but recent figures indicate that things have well and truly turned. In fact, new car sales are at pre-recession levels for the first time since the initial dip, and arguably vehicle leasing has been a core driver of that growth.
Figures released by the Society of Motor Manufacturers and Traders (SMMT) indicate that vehicle registrations from private buyers were up a fifth in May 2013 when compared to the same period last year, and taking fleet and business cars into account there were just over 180,000 registrations in May alone. This made it the strongest May for car sales since way back in 2005, and the first few months of 2013 were equally as impressive – there were a total of 948,666 car registrations between January and May, a 9.3% increase on last year.
This increase in performance marks a significant milestone for UK car manufacturing, and whilst companies are still relatively cautious, particularly when you consider the continued uncertainty in the European market, the future looks promising. And, the vehicle leasing market is faring equally as well – April was a great month for new car finance with volumes up by 37% compared with April 2012, with 227,153 new vehicles being bought on lease, hire purchase or contract hire. It’s thought that these figures go a long way to explaining the boom in UK car manufacturing, and given the cost benefits it isn’t hard to see why vehicle leasing is becoming increasingly popular.
The combination of cheaper deals and people realising the long-term value of leasing over purchasing second-hand vehicles has meant sales of new cars have been pushed to decent levels for the first time in years, ultimately having a measurable impact on the manufacturing industry and the UK economy as a whole. Given that the popularity of leasing is only ever on the rise and at Leasing4Business we are pleased and that we’re slowly making our way out of the recession, it’ll be great to see how far sales figures can go.