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Rise in UK Car Sales for first time in over a year

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UK car sales have seen a rise for the first time in more than a year following a decline due to the faltering economy.

Incentives such as cheap car loans and add-ons such as three years free servicing offered by car garages competing for a slice of the market have seen an improvement to the amount of new cars being sold.

Market research has also seen an increasing trend towards greener and smaller vehicles, although industry experts believe that the tough time for car salesmen is far from over.

The number of new cars registered increased by 7.3% in August with a total of 59,346 cars being sold compared to the previous year’s 55,463.  The Society of Motor Manufacturers (SMMT) said this is the first time that they had seen an increase since June 2010.

The Ford Fiesta still remains the most popular car model with the Vauxhall Corsa following closely behind.  The Ford Focus has seen a rise in popularity being the third most popular choice.

However the shock increase of sales was seen in the ‘mini’ car segment, with cars such as the Toyota IQ and Vauxhall Agila seeing a massive increase in sales, an astounding 34.5% in August alone.  The ‘super-mini’ segment which includes cars such as the Fiat 500, Ford Fiesta, and the Renault Clio saw an increase overall of 17.6%.

August is rarely seen as a good month for the motoring trades as most consumers tend to wait till September due to the new registration plates becoming available.  August on average normally only accounts for 3% of annual car sales, whereas September is responsible on average for up to 17%.

A senior market analyst at IHS Automotive, Colin Couchman, said “While the Focus is still a great selling car, consumers have shifted to the smaller 'B' segment [the super-mini] like the Polo and Fiesta.”

By Ben Malkin

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