“New car sales in March 2015 broke the record for this century thanks to strong fleet sales. However hopes that the symbolic 500,000 barrier would be broken were dashed. In our view, new car sales will strengthen further in 2015 as consumer confidence continues to rise. The industry continues to support the market with attractive consumer finance packages and 2015 is seeing increasing new car sales from consumers who bought cars on finance deals three years ago. Sterling has recovered roughly half the value it lost during 2008/9 and if it rises further this could make new car prices even cheaper, further bolstering the market. The main cloud on the horizon is increasing interest rates, which are expected to have a gentle impact during 2016. We remain confident that 2015 sales will grow by four percent to 2.58 million units.
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.