The press has focused on the recurring downward cycle of UK car sales. This will create issues for those lenders operating in this area such as captive finance houses. As the market chases volume, it is imperative regulatory compliance is not sacrificed as a result of a tightening client base. By comparison used car sales are currently robust. So I do not see a fundamental problem, in reality these cycles are normal. This just feels more extreme on the back of a very successful period.
A collapse in demand for diesel vehicles and falling confidence among consumers and businesses were blamed for a double digit fall in UK car sales in October, the seventh consecutive month of declining transactions. New car registrations fell by 12.2 per cent year on year to 158,192 vehicles in October, according to the Society of Motor Manufacturers and Traders. Sales of diesel vehicles fell by 29.9 per cent — the sharpest decline since the financial crisis.