Economic and political uncertainty and confusion over fuel type policy put the brakes on car dealers’ growth
Thursday 08 Aug 2019 Author: James Crux

New car registrations declined for the fifth month in a row in July with a fall of 4.1% year-on-year according to the latest sales figures (5 Aug) from The Society of Motor Manufacturers and Traders (SMMT).

Consumers remain wary regarding the economic fallout from a no-deal Brexit and are pulling in their horns when it comes to big ticket purchases. This is creating a considerable headwind for quoted car dealerships including the embattled Pendragon (PDG), the unloved Lookers (LOOK) as well as Vertu Motors (VTU:AIM), Motorpoint (MOTR), Cambria Automobiles (CAMB:AIM) ] and Marshall Motor (MMH:AIM).

SMMT data showed 157,198 new vehicles left car showrooms during July, the lowest July market since 2012. Year-to-date in 2019, new car registrations are down 3.5% as economic and political uncertainty combine with consumer and business confusion over the direction of government policy on different fuel types.

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