Ford Fiesta

New car registrations plummeted by 19.8% in April as new car tax rates were introduced.

That’s according to data released this morning by the Society of Motor Manufacturers and Traders (SMMT) which shows 152,076 new cars were registered last month – making it the worst April since 2012.

The new VED rates, which were brought into force on on 1 April 2017, introduced a flat-rate of £140 for all petrol and diesel vehicles after the first year, compared to the CO2-based system used previously.

While electric cars continue to be tax-free, alternative-fuel vehicles including hybrid and plug-in hybrid models face a £130 yearly fee. This has resulted in the first downturn in alternatively-fuelled car registrations in nearly four years, as registrations dropped by 1.3% compared to April 2016.

“With the rush to register new cars and avoid VED tax rises before the end of March, as well as fewer selling days due to the later Easter, April was always going to be much slower,” said SMMT chief executive, Mike Hawes. “It’s important to note that the market remains at record levels as customers still see many benefits in purchasing a new car. We therefore expect demand to stabilise over the year as the turbulence created by these tax changes decreases.”

Registrations by private buyers were down by 28.4%, while businesses and large fleets also registered fewer cars (-21.0% and -12.3% respectively).

Despite the substantial hit in April, the SMMT says the overall new car market remains ‘strong’, with registrations over the first four months of 2017 up 1.1% compared to 2016.

April 2017 best sellers top 10

  1. Ford Fiesta: 4,957
  2. Nissan Qashqai: 4,430
  3. Mercedes-Benz C-Class: 3,777
  4. Mercedes-Benz A-Class: 3,608
  5. Ford Focus: 3,421
  6. Vauxhall Astra: 3,346
  7. Volkswagen Golf: 3,223
  8. Audi A3: 3,000
  9. Volkswagen Polo: 2,800
  10. BMW 1 Series: 2,740