new registrations Archives

Why New Car Registrations Are Growing in the UK

Man looking at buying a new car in a dealership

Recent data from the Society of Motor Manufacturers and Traders (SMMT) has reported the fourth consecutive month of increased new car registrations in the UK, with a rise of 23.5%. This marks the strongest growth rate for the month of November since 2019.

What’s driving this rise in new car registrations, and what might it mean for both the UK new car sales market and car buyers more broadly?

What are the figures for UK new car registrations?

Despite the global motor industry’s struggle with supply chain issues, the UK’s auto market shows growth in new car registrations. This demonstrates its general resilience as well as a tentative increase in consumer demand.

Electric vehicles (EVs) continue to drive the rise in UK new car registrations, with registrations of battery EVs rising by 35.2%. This number accounts for more than one in five new cars in the month of November. It’s also the largest monthly share of the new car market held to date by EVs, at 20.5%.

Registration of plug-in hybrids (PHEVs) accounts for more than one in four new registrations, but nonetheless fell over the same period by 5.7%. Meanwhile, hybrids rose by 66.9% to comprise 11.2% total of the market. This reflects a move by fleet operators looking for emissions reductions and greater fleet flexibility.

Petrol registrations also expanded by 15% to make up 40% of the market, a notable fact given the UK’s commitment to net zero. Registrations by large fleets also grew by 45.4% year on year, with business registrations virtually doubling (though still constituting a small market share). Demand from private buyers also demonstrated a small expansion of 2.7%.

What might this mean for the UK new car sales market?

This growth in new car registrations indicates a tentative recovery for the UK market, but car sales still remain around 9% below equivalent pre-pandemic levels, even with this growth.

The growth in market share by EVs does indicate a rising preference for non-fossil fuel vehicles. However, the market share of new car registrations held by petrol cars remains almost double that of EVs. As such, Mike Hawes – CEO of SMMT – has urged the government to further invest in EV incentive schemes and build more electric charging infrastructure ahead of consumer need. This aims to incite more consumers to adopt greener vehicles and ensure that the country will meet its net zero targets.

Further recovery of the UK’s auto industry is anticipated in 2023, with current projections suggesting a 15.4% rise in market growth. However, with the cost-of-living crisis and concurrent rise in energy prices, there are still reasons to be wary of premature conclusions regarding the market’s stability. As consumers face higher costs for charging electric vehicles, there is a risk that this may cause the market to stagnate with a drop in demand for EVs. Given that EVs are driving the current rise in new car registrations, this drop would impact the market’s overall growth.

How might this affect car buyers?

It’s difficult to make any clear conclusions as to how this growth in new car registrations might impact car buyers. Certainly, the demand for EVs and hybrid cars is only likely to increase, backed by government commitments towards net zero.

The UK government has promised an investment of £12 billion towards a net zero target by 2030, and reaffirmed their commitment towards transitioning to 100% zero emission cars and vans in the wake of COP26. The roadmap for achieving this transition includes steps such as ending the sale of new petrol and diesel engine cars, with a complete ban in 2030, and ensuring that all new cars and vans are zero emission by 2035. There’s also greater investment (specifically a commitment of £5 billion) to infrastructure, manufacturing and R&D for EVs.

However, EVs remain more expensive at initial purchase, which – in combination with the aforementioned rise to cost-of-living – may make consumers more resistant to purchasing brand new electric motors.

How to finance a new electric vehicle

For drivers looking for a way to reduce their carbon footprint and upgrade their car at the same time, opting for an EV or hybrid is an ideal choice. However, it can be a costly move, which is where car finance comes in.

If you’re looking for an affordable, accessible way to purchase an EV, you can use our car loan calculator to see the kinds of finance agreement you may be eligible for. Alternatively, email one of our team at enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

Do Car Prices Drop When a New Reg Comes Out?

If you’re in the market and searching for a new motor, the chances are that you want to keep the price down. It’s not uncommon when the cheapest of vehicles can set you back thousands of pounds. That’s why finance deals have become more popular in recent years – they provide an affordable way to obtain a quality car.

Still, it never hurts to lower the price even more. Then, your monthly payments will be smaller, and you’ll spend less on a valuable vehicle. Is waiting until the new registration plates come out in spring and autumn a savvy strategy? It can be if you know what to look for when browsing dealerships.

When are new licence plates released?

In the past, registration numbers only changed once a year. However, everything changed in 1999 when the government attempted to even out the number of licence plate releases throughout the year. From that point, regs were brought out twice annually, once in March and once in September. To be specific, the dates are March 1st and September 1st.

Do car prices drop when a new reg comes out?

There isn’t a one-size-fits-all policy across the board. You’ll be glad to hear that new reg plates will reduce the price of a vehicle, and therefore your premiums, in some instances.

However, this isn’t the case if you’re after a brand-new motor. If you want the latest make and model with a shiny licence plate, the latest number (21 and 71 for 2021, 22 and 72 for 2022, and so on) will cost you more because it makes the car more valuable. Where price drops come into play are on the used car market.

Do used car prices drop when a new reg comes out?

Typically, the answer is yes. The reason is that dealers experience lots of traffic around early March and September, and most buyers are on the lookout for a brand spanking new vehicle. To make room for them, they need to balance the books by selling the less popular stock.

This includes used and second-hand models that other interested parties, such as yourself, are happy to snap up if the price is right. The same applies to part-exchanges because they make up around 90% of all car sales.

Here’s how to make the most out of that information….

Searching for used cars

Now that you understand how dealers work, you can target the vehicles that you know command a cheaper asking price. Essentially, you’re searching for anything older than the latest release. After all, your loan won’t be as big if the going rate is lower.

Using PCP

On the other hand, if you’re buying a newer car and don’t want the new reg released to affect its value, PCP could be the best option. Short for personal contract purchase, PCP is a type of finance deal that involves paying monthly instalments for the length of the contract.

When the deal is over, you can return it, find another agreement, or purchase the vehicle outright. By opting for PCP, you don’t need to worry as much about the depreciation rate involved with old reg plates. All you need to do is check your car finance eligibility and return the motor before the deadline.

Finding the best finance deals

Whether you’re looking to buy a nearly new car at the best price or make a brand-new registration more affordable, My Car Credit is on hand to help. We use a large network of trusted lenders to find the best deal for you, whatever your credit rating.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

How Quickly Can You Buy a Car?

5 Best Car Picks for Elderly Drivers

What’s the Best Month to Buy a Car?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car buying tips new registrations used car prices

When is the Best Time to Buy a Car?

Securing a good deal on a new or used car is one of the most important things for any driver. Sadly, it’s not as simple as picking a vehicle that’s within your budget and driving it off the forecourt. Unbeknownst to many drivers, different issues impact the suitability of a car.

The time of year is a prime example. If you keep your eyes on the calendar, the reality is that you will have a bigger chance of bagging a bargain. With that in mind, below you’ll find some useful tips that finally answer the question – when is the best time to buy a car?

Remember the seasons

It’s hard to see why the seasons should affect the price of a car on the surface. But, when you delve deeper, you’ll spot a couple of blindingly obvious issues. For instance, convertibles are much more pleasurable to drive in the summer. As a result, the demand for convertibles is high in the warmer months, which can add onto the asking price. Conversely, summer is a good time to shop for a 4×4 since demand is low compared to the wintertime.

Factor in the launch of number plates

Number plates have the same effect on car sales as the weather. When the latest registrations are released, people flock to get hold of cars that represent the fact they own a new plate vehicle. As a result, the demand at the time is incredibly high, meaning that there isn’t much room for haggling.

The trick is to stay away from dealerships on these busy dates, which are usually March 1st and December 1st. Instead, you should go much later in the month, or the year if you have the room to manoeuvre, to avoid paying higher rates.

Understand your budget

Your budget will change monthly. This is because you will have regular incomings and outgoings that affect your ability to pay for a vehicle outright. Yes, you can save up, but it takes the average person years to accumulate enough to walk into a dealership and drive away with a brand spanking new motor.

You may now have answered when is the best time to buy a car but how will you pay for it? You may have the option to purchase a car through a financing service that breaks your expenses down into bite-size chunks. By paying monthly, you should have plenty in your account to cover the transactions. And, it doesn’t matter if your credit is low as car finance poor credit deals are available. Once you understand your budget correctly, you can find ways to get what you want without having to wait a lifetime.

At My Car Credit, we are specialists in finding top-of-the-range financing solutions that are tailored to your specific requirements. With us, you don’t have to bother about the time of year as we scour the industry to locate the best quotes. Call us today to learn how we can guide you through the process!

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

How Quickly Can You Buy a Car?

5 Best Car Picks for Elderly Drivers

What’s the Best Month to Buy a Car?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

best time car buying car dealer Jan24 new registrations timing

Why New Car Registrations Are Growing in the UK

Recent data from the Society of Motor Manufacturers and Traders (SMMT) has reported the fourth consecutive month of increased new car registrations in the UK, with a rise of 23.5%. This marks the strongest growth rate for the month of November since 2019.

What are the figures for UK new car registrations?