April saw a decrease in new car sales as they dropped by 20%
There was a decrease in new car sales by 19.8% and it is said to be because of the new tax changes that were brought in at the end of March this year. Many customers rushed to purchase their cars before this date to avoid an extra costs they may face because of the increase in vehicle taxes. As a result sales in March saw an increase of 8.4%.
Despite this, the first four months of 2017 saw a 1.1% increase in sales in comparison the previous year. Petrol cars however are still the most popular choice with just over 50% of the market.
The current most popular car of the year is the Ford Fiesta with 4,957 sales so far this year, and Ford owning just over 10% market share.
View all of the changes in the new car market here.
The TAX Changes
At the end of March there were new tax changes brought in. The news charges are now dependant on the type of vehicle and the fuel that it uses.
For petrol and diesel vehicles the cost is £140 per year.
Vehicles that use alternative fuels such as hybrids, LPG and bioethanol will cost £130 a year.
Cars with no CO2 emissions at all will pay nothing for their vehicle tax.
All of these prices are based purely on the CO2 emissions their vehicle produces. This is to encourage people to look into purchasing more eco-friendly cars. This is because it will be cheaper for them to run as well as helping to protect the environment.
22% of CO2 emissions across the UK are directly from road traffic.
Have you ever bought a car based on CO2 emissions? Is it something you look for when purchasing a new car? Let us know in the comments below!