New car registrations grew 3,176 percent in April 2021 as showrooms reopened – but the Society of Motor Manufacturers and Traders has urged caution at this ‘artificial’ figure.
Last month’s volumes remain 12.9 percent down on the 10-year average with 141,583 new cars registered. They are also lower than April 2019.
Private car buyers have been returning to retailers since they reopened on 12 April, shown by a more than doubling of market share.
Last year, just 871 retail cars were sold: last month, this rocketed more than 7,000 percent to almost 62k cars.
Even so, demand from consumers is still 14.5 percent down on the 10-year average.
The SMMT has also pointed out that pure electric car sales were, unusually, beaten by plug-in hybrid (PHEV) volumes. April’s registrations were also lower than the Q1 2021 average, following cuts to the Plug-in Car Grant.
Pure electric cars are now expected to count for 8.9 percent of new car registrations in 2021, down from an earlier forecast of 9.3 percent.
“After one of the darkest years in automotive history, there is light at the end of the tunnel,” said SMMT chief executive Mike Hawes.
“A full recovery for the sector is still some way off, but with showrooms open and consumers able to test drive the latest, cleanest models, the industry can begin to rebuild.”
The SMMT has revised its full year forecasts upwards, on the back of the vaccine rollout, from 1.83 million vehicles to 1.86 million new cars.
“Market confidence is improving, and we now expect to finish the year in a slightly better position than anticipated in February, largely thanks to the more upbeat business and consumer confidence created by the successful vaccine rollout.
“That confidence should also translate into another record year for electric vehicles, which will likely account for more than one in seven new car registrations.”
Gallery: The fastest depreciating cars over the past 12 months (Motoring Research)
After the purchase price, depreciation is usually the costliest part of running a car. You’ll lose thousands of pounds simply by driving a new car out of a showroom. We’ve teamed up with Cap HPI to reveal the 20 fastest depreciating cars over the past 12 months. It could be bad news if you own a Toyota hybrid.
20. Peugeot 3008
Change over 12 months: down 15 percent
The CAP HPI figures are based on the percentage change over the past year. The data assumes that a car is three years old with 30,000 miles on the clock. The current Peugeot 3008 SUV has lost an average £2,345, making it the 20th fastest depreciating car in the UK.
19. Volkswagen Touran
Change over 12 months: down 15 percent
Next up is the Volkswagen Touran. It’s a practical and spacious MPV, but the Touran lacks the styling and desirability of SUVs like the Volkswagen Tiguan, so residual values have taken a knock. Values have decreased by an average of £2,379 over the past 12 months.
18. Smart Forfour
Change over 12 months: down 15 percent
The combination of expensive prices and a shortage of demand on the used car market resulted in steep depreciation for some of the earliest electric cars. Things are improving, but the electric version of the Smart Forfour shows that the EV is still playing catch up. Its cause isn’t helped by the limited range and high price when new.
17. Volvo S90 and V90
Change over 12 months: down 15 percent
We totally get why someone would buy a Volvo S90 or V90 over their German saloon and estate rivals. Upmarket styling, a sophisticated interior, a focus on comfort and strong safety credentials are just a few of the hallmarks of these large cars. Unfortunately, the big Swedes suffer from big depreciation, shedding an average of £2,883 over the past 12 months.
16. Mitsubishi Outlander PHEV
Change over 12 months: down 15 percent
The Mitsubishi Outlander PHEV is the country’s best-selling plug-in hybrid, but that doesn’t prevent it from appearing on the list of the fastest depreciating cars. According to CAP HPI, the SUV has shed an average of £2,900 in the past year, as the Outlander faces up to a new range of rivals, including pure electric vehicles.
15. Vauxhall Astra
Change over 12 months: down 16 percent
This list is ranked in order of the percentage movement, so although the Vauxhall Astra has lost an average of ‘just’ £1,400 over the past year, that’s a relatively high proportion of the list price. The Astra is a far better car than its lacklustre image would suggest, but it’s the drab persona that plays a part in poor residual values.
14. Honda Jazz
Change over 12 months: down 17 percent
It’s a bit of a shock, this one, because the Honda Jazz is one of the darlings of the used car market. It might have something to do with the fact that it’s been replaced by a new model, with existing owners keen to trade up to the latest version. An oversupply of cars will depress residuals, which is why values have dropped by an average of £1,574.
13. Kia Soul EV
Change over 12 months: down 17 percent
Another electric car, this time in the form of the previous-generation Kia Soul EV. It was hamstrung by a high purchase price, limited range and an electric car market still in its infancy. The new Soul EV is better in all departments, but if the old model continues to lose value at a rate of £2,250 a year, it could become a used bargain.
12. Toyota Yaris Hybrid
Change over 12 months: down 17 percent
The Toyota Yaris Hybrid is another example of a car that has been replaced by a new model. You can look at its steep depreciation in one of two ways. As an owner of a nearly-new example, you’re faced with the prospect of losing £1,881 a year. As a prospective purchaser, you can look forward to low running costs and an excellent reliability record for a bargain price.
11. Seat Alhambra
Change over 12 months: down 18 percent
Seven-seat MPVs are facing a fight for survival as buyers turn to the perceived benefits of owning seven-seat SUVs. The Seat Alhambra was a decade old and looking a tad expensive by the time it was pulled from sale in 2020. An unfashionable image means that the Alhambra is a depreciation disaster, especially as some buyers prefer to pay extra for the almost identical Volkswagen Sharan.
10. Vauxhall Zafira
Change over 12 months: down 18 percent
The Vauxhall Zafira is another casualty of the country’s obsession with SUVs. This, combined with a lacklustre image and a less than polished reliability record, means that the Zafira suffers from steep depreciation. CAP HPI data shows that it lost an average of £1,923 over the past 12 months.
9. Vauxhall Mokka and Mokka X
Change over 12 months: down 20 percent
Cheap finance and Motability discounts meant that the old Vauxhall Mokka was one of Britain’s most popular new cars. This created an almost artificial demand for what was one of the weakest cars in the crowded compact SUV class, so used values took a rapid tumble. They have dropped by around £2,000 in the last year.
8. Kia Niro
Change over 12 months: down 20 percent
Take the impressive e-Niro out of the range and you’re left with a pretty humdrum crossover. Adequate in most areas and backed by a seven-year warranty, but the fact that values have dropped by £3,175 tells you everything about lack of demand on the used market. It’s unlikely to go wrong, but the Niro is short on glamour.
7. Hyundai Ioniq Hybrid
Change over 12 months: down 20 percent
There are three versions of the Hyundai Ioniq: Hybrid, Plug-in Hybrid and Electric. The hybrid is the least convincing of the trio, so it’s no surprise to find it on the list of the fastest depreciating cars. Values have fallen by an average of £2,715, but the Ioniq is backed by a five-year unlimited mileage warranty.
6. Subaru Impreza
Change over 12 months: down 23 percent
The Subaru Impreza is very much a niche car in the UK. There’s little demand for a four-wheel-drive family hatchback, even if it does make sense if you live in a rural area or a region battered by British weather. It also has a very good reliability record. With values dropping by an average of £2,888 over the past year, it’s an excellent used buy.
5. Citroen C-Zero
Change over 12 months: down 23 percent
Remember the Citroen C-Zero? The electric car was sold alongside the Peugeot i-On and Mitsubishi i-MiEV, but sales were hampered by a high price and a poor charging infrastructure. Much has changed, but the limited range and oddball looks contribute to depressed used values. These have dropped by an average of £1,950.
4. Jaguar XF
Change over 12 months: down 24 percent
The more expensive the car, the more you’re likely to lose. With prices starting from around £32,500, the Jaguar XF is one of the priciest cars on our list of the fastest depreciating cars in the UK. The large executive saloon has lost £4,400 over the past 12 months.
3. Toyota Prius+
Change over 12 months: down 24 percent
Get ready for a Toyota one-two-three. If you’re after an efficient and reliable seven-seater, the Toyota Prius+ is certainly worth a look. However, sales were hampered by drab styling and a high price. Values have plummeted by £4,800 over the past year.
2. Toyota Prius
Change over 12 months: down 31 percent
There’s a good reason why Toyota hybrid values have dropped over the past 12 months: the pandemic. Car usage is down, with the private hire sector suffering more than most. As CAP HPI’s head of valuations, Derren Martin, told Autocar: “[With] certain models like the Prius and Auris, a lot of their sales go to that sector, and if you’re a taxi driver or an Uber driver, you’re not going to replace your car.” Toyota Prius values are down £5,500.
1. Toyota Auris Hybrid
Change over 12 months: down 32 percent
In percentage terms, the Toyota Auris Hybrid is the fastest depreciating car in the UK. Values have dropped £4,534 during the pandemic, with the fact that the Auris has been replaced by the superior Corolla not helping its cause.
21/21 SLIDES
April 2021 best-selling cars
The Vauxhall Corsa is once again Britain’s best-selling new car. Year to date, it has clocked up more than 16,000 registrations – putting clear space between it and last year’s favourite new car, the Ford Fiesta.
The Corsa has been Britain’s best-selling car for eight of the past 12 months.
Surprisingly, the Mercedes-Benz A-Class came out second, ahead of the Ford Fiesta and the increasingly popular Ford Puma SUV.
The Volkswagen Golf family hatch rounded out the top five, while the Ford Kuga crept into 10th place to make it four Fords in the UK’s top 10 best-selling cars.
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