Frosty start to 2009 for new sales

Sales of new cars fell dramatically in January despite a cut in VAT by the Government and major price cuts from dealers. Official figures from the Society of Motor Manufacturers and Traders (SMMT) showed that only 112,087 cars were sold in January. New car sales were down by 30.9 per cent or 50,000 units on January 2008.

But while new car sales remain poor, many dealers are reporting a 'best-ever' January for nearly-new and used car sales, as buyers sought to make the most of unprecedented offers, with two-for-one offers and between 40-50 per cent off some models. Canny buyers have been snapping-up these offers, as reported by Parker's, in increasing numbers towards the end of January and into early February.

This renewed interest has pushed prices up at auctions and could mean that prices will go up in the coming months. Car manufacturers have also cut back on production, which means that supply is likely to match demand very soon and the offers that are currently available will no longer be offered.

Dealers are continuing to cut thousands of pounds off new cars as they attempt to sell off unwanted stock and Parker's are finding new deals every day. Despite the continued fall in sales, Ford and Vauxhall have pushed ahead with raising the prices of their cars. However, the rise may appear on paper but buyers should still be able to get cars at discount.

Compared to December's figures, some manufacturers have actually posted positive figures with Jaguar and Hyundai both selling more cars in January 2009 compared to January 2008. Small cars, led by the new Fiesta, continue to dominate the top five as buyers move towards more economical models.

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The best performing cars in January

1 Ford Fiesta 8899 2 Ford Focus 5805 3 Vauxhall Corsa 4550 4 Vauxhall Astra 3765 5 Volkswagen Golf 3164

The worst performing cars in January

1 Chrysler -77% 2 Mitsubishi -72.8 3 Daihatsu -69% 4 Subaru -59.8 5 Chevrolet -58.3