New UK Car Registrations Have Fallen For Eleven Consecutive Months

May represented the eleventh successive month during which new car registrations in the UK fell. Though there was a drop, it was the smallest since registrations began declining last July, reports the Society of Motor Manufacturers and Traders (SMMT).

Though fewer UK residents have bought vehicles this year, the industry says sales are still on track and experts report positive things to come.

The data provided by SMMT for May was the straightest comparison available in two years regarding new car registrations. Last April, the scrappage program designed to revive the auto industry ended.  The May 2010 to May 2011 comparison did not include any statistics represented by the program.

SMMT reported that new vehicle registrations in Britain declined by 1.7 percent for year ending May 2011. During the first five months of 2011, registrations have declined 7.3 percent. Despite this, the auto industry says it should be able to meet its 2011 forecasted sales of 1.93 million units.

Diesel and fleet car sales were strong in May, each increasing by more than ten percent.

The Ford Fiesta currently reigns as the most popular automobile in Britain. In May, more than 8,135 Fiestas were sold. SMMT noted, however, that consumers are still being cautious when it comes to car finance, personal contract purchase pcp, and buying a vehicle outright.

Car sales to individuals declined 15.3 percent during May. With rising expenses at the grocery store and fuel pump, people are making more effort to keep expenses in check.

SMMT Chief Executive Paul Everitt says that things should begin to look more positive for consumers. Vehicles with improved fuel economy are rolling off production lines. Dealers are offering excellent service plans and lenders are making car finance more affordable.

In general, he says, the market will offer great value to consumers in coming months.