Graham Hill, car finance expert at the National
Association of Commercial Finance Brokers, said:
"New car registrations have continued to fall, albeit at a slower
pace, for a third consecutive month as VED tax changes and
dwindling consumer confidence start to bite.
"It was always forecast that March's stampede to beat the VED
deadline would in turn mean less registrations in consequent
months, so this is no great surprise.
"Set against the wider backdrop, the new car market is still in
rude health - after all, the first half of the year was the
second biggest on record.
"A large proportion of this success has to be attributed to the
uptick in car finance, which accounted for around 86% of new car
sales last year.
"Manufacturers looking for stronger sales in the second
half of the year will turn to providing larger discounts and
bonuses to make car finance deals look more
attractive.
"They have the ability to do so as new car prices in the UK
are the highest in Europe, providing plenty of wriggle
room.
"As the FCA continues to look into the lack of transparency
around the selling of certain car finance deals, the
sabre-rattling around the actual finance products themselves
needs to soften.
"It already looks like the adverse publicity surrounding Personal
Contract Purchases in particular has knocked consumer confidence
in the product. Carry on like this and we risk driving away
consumers and talking the market into an early grave."
