New car sales fall again in October

October saw new car sales fall for the fourth month running, again demonstrating the impact of the end of the scrappage scheme.

A total of 131,495 cars were sold, 22% less than in October 2009. This represents the steepest decline since May 2009.

The October 2010 figures were, however, 2% ahead of October 2008 and, if scrappage was ignored, on a par with sales in October 2009. Over the past 12 months total growth measures 10%.

The market remains 5% up to date compared to 2009, at nearly 1.8 million cars. The total sales figure for the year is still expected to beat 2009 by a modest 1.5%, at just over two million sales.

Some car makers did better this October than last year. Bentley improved sales by 52%, BMW by 25% and Alfa Romeo by 22%. Saab, with its future secure, registered a 12% increase.

Others didn't fare so well - including SsangYong (down 83%), Chrysler (down 67%), Hyundai (down 57%), Suzuki (down 55%) and Fiat (down 46%).

The Ford Fiesta was again the best selling model in October, ahead of the VW Golf and Vauxhall Astra - but registrations of smaller cars have fallen sharply in recent months.

Buyers seem to be considering fuel costs more as diesel sales rose by 4%, now accounting for 55% of the market, almost 14% higher than last year. Alternative fuel car sales rose 14% in the month and are up over 50% to date.

While sales continue to fall, the VAT rise in January could positively affect demand towards the end of 2010 with customers buying cars in the belief they will beat the rise - but this might not be the case.