Fleet and Business sales are helping new car registrations continue a 28-month unbroken growth run – and it’s set to continue, predicts data experts Glass’s.
The firm’s head of analytics Andrew Jackson predits that Business sales – to firms with fleets of up to 24 cars – will rocket by a fifth in July, ensuring the long-awaited recovery in the sector gathers further pace.
This means that Fleet (25 cars and more) and Business sales combined will form the majority of new car sales, after a long period of parity with the private sector; Jackson predicts 44% Private, 51% Fleet and 5% Business registrations in July.
A shift in the type of fuel people are choosing is emerging too, he said: petrol was down 0.4%, to 106k sales, in last month’s SMMT new car registrations figures, while diesel was up 12.2%, to 117k registrations. This is also, explained Jackson, indicative of how the new car market dynamic is changing.
“The June figures may well be indicating that the Private market is finally hitting its saturation point for petrol vehicles, while diesel’s popularity in the Fleet and Business sectors continues to drive growth in diesel-fuelled registrations.”
Vauxhall Insignia: a top 10 star
Vauxhall’s Fleet and Business-friendly Insignia appeared in the June 2014 top 10 new car registrations chart, seemingly disproving the myth that nobody buys D-sector cars anymore. Sales were up a staggering 114%, revealed Jackson, who explained that “a combination of attractive BIK and the summer months is driving demand, largely in the short-cycle leasing sector, creating ideal conditions for Vauxhall.”
It is a car clearly benefitting from the shift towards so-called ‘company car’ sales.
Fleet and Business may not have it all their own way for long though, noted Jackson. Traditionally, the summer months are quiet for private buyers, who generally wait for the September new car registration plate before changing their car. This period is “increasingly subdued”, he said – suggesting that there may still be life in the Private sector yet. The entire industry will be waiting with anticipation for the SMMT’s new car registrations roundup in early October.