slump

Car sales slump as vehicle prices continue to surge

Vehicle sales dropped again in June, the second month in a row of declining vehicle sales, as rising prices and shortages keep would-be buyers away.

Imported vehicle sales fell 13.1% from the previous month while domestic vehicle sales also declined, down 8.7% overall as auto sales shrank 11.2% and truck sales fell 8%. The declines dragged car sales to below their pre-pandemic level.

“Vehicle sales have contracted for two consecutive months as extremely high prices, particularly for used cars, is cutting off demand,” Oxford Economics’ Mahir Rasheed said in a research note. 

Consumers are feeling the pinch. The portion of households who said June was a good time buy a vehicle was at its lowest level in nearly 40 years, according to the University of Michigan. Oxford Economics expects the drag on car sales to last through the year. 

“While robust domestic demand and an improving health backdrop will

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Car sales slump to 20-year September low despite new reg plates

Mike Hawes, SMMT chief executive, said: “During a torrid year, the automotive industry has demonstrated incredible resilience, but this is not a recovery. Despite the boost of a new registration plate, new model introductions and attractive offers, this is still the poorest September since the two-plate system was introduced in 1999.

“Unless the pandemic is controlled and economy-wide consumer and business confidence rebuilt, the short-term future looks very challenging indeed.”

However, the decline is not entirely down to motorists reining in their spending, according to trade group the National Franchised Dealers Association.

It said that dealers had experienced “strong” demand with “high levels of enquiries”, but supply problems had held back a number of manufacturers so they had been unable to get cars to buyers.

Sales of cars to private motorists, which represent roughly half of the total, were down 1.1pc in the month, while those to fleet buyers such

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