That standard will mean that diesel cars that don’t reach a certain emissions benchmark will incur more tax than before.
Experts suggest a slump in confidence is helping the nation’s big ticket spenders get over their addiction to credit.
So many are using the vehicles they already have and we are seeing a drop in demand – although Brexit is also in the back of people’s minds.” And the problems being stored up could affect the retailers far more than the consumers.
KPMG recently published a survey of automotive executives that showed 61 per cent believe issues could arise if significant numbers of vehicles are handed back with a lower-than-anticipated value.
The march of the brand new car once seemed unstoppable.
Cheap finance and personal contract plans (PCPs) fuelled a boom in new cars, accounting for more than 80 per cent of all new car registrations.
The average price of a second-hand car on a like-for-like basis increased by 4 per cent between 20.” Key industry figures have commented that car finance is conservatively modelled and asset-backed, making it lower risk and unlikely to cause a shock to the financial system.
Levelling out Not everyone believes that demand is heading towards a significant fall; some argue that it is simply levelling out.
But what if it’s not just “dirty diesel” news stories and the new emissions standard that launches next month?
Research from Auto Trader showed that 37 per cent of car buyers claim to have bought on finance because it enabled them to spread out their payment monthly, 36 per cent to get a better deal and, revealingly, 36 per cent because they couldn’t afford to purchase a car otherwise.
Cheaper to access, smarter to drive, it’s easy to see why new cars on credit have been so attractive.
Of particular concern was the 45 per cent of drivers who said they had been forced to cut back elsewhere to meet their car repayments.
Yet Auto Trader’s Nathan Coe says there’s little evidence of mis-selling or of a bubble within car finance.