New car registrations further dented

L Industry leaders describe 24.2 per cent fall in Scottish sales as ‘dramatic’

and economic consequences.”

Freddy Macnamara, chief executive and founder of pay-as-you-go insurer Cuvva, said: “The new car market has now slumped for an eighth consecutive month and there are several potential reasons for this.

“High inflation is putting a squeeze on people’s finances and making them less likely to purchase ‘big ticket’ items such as a car, while government policy on diesel is also contributing to falling sales.

“Another factor, not as well documented though, is the changing habits of drivers in the UK. A lot more people are now taking advantage of car sharing websites, or borrowing cars from friends and family, rather than owning their own vehicle.”

The decline in the new car market is also likely to have been impacted by higher vehicle excise duties, particularly at the upper end of the market.

Howard Archer, chief economic advisor to the EY Item Club, added: “It is notable that private sales have been the weakest sector over the first 11 months of 2017. Private sales were down 6.3 per cent y/y over January-november. This is consistent with the overall softness in consumer spending over the year so far, particularly a reluctance to make major purchases.”