Paragon: Brokers expect registrations to slip into neutral
Almost three quarters of brokers (72%) expected a levelling off in new car sales over the course of 2016, according to Paragon Car Finance.
One quarter (24%) of brokers surveyed continued to see scope for a further increase in sales in 2016, with only a small minority (4%) expecting registrations to drop.
For those optimistic about further gains compared to 2015, low interest rates (80%), continued economic growth (60%) and manufacturer support (60%) were highlighted as the most important factors supporting sales.
Meanwhile, brokers said the biggest potential threat to buoyancy came from the possibility of an interest rate rise (52%), alongside the risk of an over-supply of new cars into the UK market (29%).
Julian Rance, head of Paragon Car Finance said: “After several years of strong growth, the broker community is clearly expecting to see a gradual cooling off in the rate of new car sales growth.
“Encouragingly, car buyer confidence remains high and with expectations that UK interest rates will now stay lower for longer, we should continue to see healthy levels of activity across the new and used car market in the UK for the foreseeable future”.
The Paragon Car Finance Headlight Survey is a quarterly survey of the UK’s top 30 vehicle finance brokers operating across the UK.