John Leech, head of automotive at KPMG UK, comments on the UK car registration figures published today by the SMMT.
He said: “UK new car sales were up 2.5 per cent in May due to the buoyant fleet sector offsetting a fall in demand from consumers. This is the second month that consumer demand has softened and signals that the top of the market has been reached for consumers following 2015’s all-time record sales. Sterling has weakened by 11 per cent since November 2015 due to Brexit fears but so far this has not translated into transaction prices as manufacturers anticipate this is a short-term fluctuation. Cheap PCP car finance offered by manufacturers remains widely available and with renewals rising, it is unlikely that we will see consumer demand soften substantially further this year. Fleet sales are unlikely to keep up their current pace of growth for long however it is likely that the total UK car market will plateau in the second half of 2016.
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