New car sales figures are heading for an entry March, as expected, around 40,000 motorists put forward their planned purchases in order to avoid vehicle excise duty changes, which came into effect on the 1. April 2017.
With the numbers for the month due this week, and some estimates predict that the largest ever recorded in March, total sales registered in the UK, with up to 550,000 new cars. That would be an increase of about 6% compared to March 2016, when 518,707 new cars were registered.
Auto dealers, rise above the VED in their sales calls to potential customers, especially the large number of the car to allow the buyer currently on the PCP Finance, which have the flexibility to owner, to terminate the contract early and sign up for a new, lower taxes on the car.
The VED changes will affect car costs more than £40,000 to the tune of hundreds of pounds per year, which means that some drivers could save more than £500 over a two-year PCP deal by switching to a car with a lower VED rating.
Everything you need to know about VED
The turnover of distortion by the new VED system is likely to impact on the whole year, with month-on-month decreases in new car registrations expected in April, may and June.
The industry continues to predict that the full year, new car registrations fall in the year 2017, as the UK leaving the EU becomes effective, and the economic confidence falls. The Society of Motor Manufacturers and Traders is predicting that a total of 2.54 million new cars registered this year, compared with 2.69 m last year. There are also concerns that interest rates will rise, increasing the cost of car financing.
Distributors, the forward -to production at the end of last year, also cut back supply while the Rest of the year, and this will be the push-down-registrations.
Last month, the new car sales boom follows one of the quietest Februarys for more than half a decade.