New car registrations were down in August

According to recently released figures new car registrations last month were at their lowest for any August since with the forty two year low being blamed on terrible conditions in the financial markets. The data comes from the Society of Motor Manufacturers and Traders (SMMT). Declining consumer confidence is thought to have a profound negative impact on new registration levels.

The data showed that in August of this year new car registrations were down by 18.6% compared to August of last year, with the figure standing at 63,225. The SMMT has now urged the government to take swift action to boost the economy and revive consumer confidence levels.

A senior official from the SMMT stated: “Industry is encouraged by the growing interest in lower-carbon cars, but is concerned by the reluctance of consumers to commit to major purchases.” He added that the low level of registrations may also be down to the increased cost of petrol.

It is thought that a fall in oil prices could help to boost confidence and registration levels. However, recent reports have shown that whilst oil prices have been falling the cost of petrol has not been coming down, and in some cases has been raised.