Dealers slash prices as sales slump

Official figures show that car buyers have deserted showrooms as Britain's second-biggest car sales month was hit by the economic downturn.

Statistics from the Society of Motor Manufacturers and Traders (SMMT) show just 330,295 cars were sold in September. That's down 21.2 per cent, or 89,000 cars, on September 2007 and it's the fifth consecutive month of falling sales.

The plate change in September is usually the second-strongest month of the year and can account for up to a fifth of the year's total. However, with the downturn in the economy and finance not being so freely available, sales have collapsed and the car market faces the toughest time since 1991.

Paul Everitt, SMMT chief executive, said: "New car registrations have fallen for the fifth consecutive month and represent the most difficult economic conditions the industry has faced in 17 years. The chancellor's pre-budget report should set out a package of measures to boost demand for new fuel-efficient cars and scrap plans for unfair increases in car tax."

Dealers slash prices to combat downturn

Those that will benefit from the slump are the buyers looking for a new car in the next four months. As dealers slash prices to get people into showrooms, those with money in their pockets could really cash-in. Thousands of pounds have been slashed from the list prices of many family cars by dealers. In the last month Parker's has seen £4,000 off the yet-to-be-launched Vauxhall Insignia, £1500 off the new Ford Fiesta and £12,000 off a large 4x4.

Among the dealers suffering the most (and therefore most likely to be offering the best deals) are Alfa Romeo, Land Rover, Lexus, Renault, Saab and Subaru. However, those looking to trade-in a Land Rover, or any other large petrol-engine car, may find that it's not possible to do so. Many dealers have been turning away these types of car and private sales remain slow.

The best selling cars in September

1 Vauxhall Corsa 15,647 2 Ford Fiesta 13,316 3 Vauxhall Astra 12,965 4 Ford Focus 12,683 5 Volkswagen Golf 10,048

The worst hit manufacturers in September

1 Chrysler -68.9% 2 Proton -65.9% 3 Cadillac -61.6% 4 Jeep -61.0% 5 SsangYong -56.5%