Market Research News

UK Car Market Falling – But Not For All UK Cars

  • August 7, 2017
  • By Pete Nisbet
  • 0

The UK Car Market is falling – it has just fallen for the fourth month in a row. According to the Society of Motor Manufacturers and Traders (SMUT), new car registration is July were 9.3% less than the same month last year. This is not a good figure for the UK car market.

UK Car Market

Brexit Blamed for Poor Car Sales Figures

Once again, Brexit has been blamed for poor sales figures for one of the UK’s major industrial products. Why ‘growing uncertainty’ regarding Brexit should affect the British public’s purchase of cars is a mystery. Generally, at least in the UK, people who need to buy a car buy one. Those individuals who like to purchase new models each year do so, Brexit or not.

 

This year, UK buyers have purchased a total of 1.56 million vehicles. This is 2.2% less than at the same period last year. Around 162,000 cars are being sold each month in the UK. But is the UK car market failing or is it not. The change in ‘Road Tax’, the common name for Vehicle Excise Duty, may also have an influence on new car sales. So what are these changes? Here they are in a nutshell:

Car Taxes Based on Emissions

Cars will be taxed according to their emissions. On top of that, cars that cost over £40,000 will pay an additional £310 for 5 years. That means even a Tesla 3 electric car with no emissions will be due payments of £310. Because it is electric, there will be no emissions charge.

 

Take a standard petrol or diesel car with emissions of 131-150 g/km. The first year charge will be £200 and then £100 per year after the first. A car with emissions of 226 –255 g/km will pay £1700 for the first year and then the same $140 per annum after that.

Tesla Cars Look Good

While sales of electric cars are increasing, it is not all for car tax reasons. Tesla cars in particular look good and are great to drive, although they can have unexpected added costs. Nevertheless, the costs of running a new car can be low or high, depending on your disposable income. The cost of running a Tesla drops every year, and I am still waiting to buy my first one.

About Pete Nisbet

Pete has been working in the field of website design and content for many years. He has a great interest in technology and current affairs, particularly business affairs. Pete's interests are technology, writing and world affairs and he is widely traveled. Pete also holds an Honors BSc from the University of Edinburgh.