Demand doubles as north heads motor trade recovery
New car sales in Highlands accelerate
Published:
Motorists in the Highlands are spearheading the motor trade’s recovery by buying new cars faster than anywhere else in Scotland.
Sales in the region have soared to more than twice the number a year ago, new figures revealed yesterday.
The Scottish Motor Trade Association (SMTA) said 866 new vehicles were bought in the Highlands last month, compared with 427 in October 2008.
Car dealers at Aviemore and Inverness reported a surge in sales of fuel-efficient cars.
Motorists are turning to small, eco-friendly models to offset the cost of fuel in the Highlands where diesel and petrol prices are among the highest in the UK.
Sales have also been boosted by the UK Government’s “cash for bangers” scrappage scheme, while motorists are also rushing to buy new cars before the 13-month VAT reduction ends on December 31.
James Hamilton, group marketing manager for Macrae and Dick, which has five dealerships in Inverness selling a range of marques, said: “October 2009 has shown a significant increase in new car volumes across the group, particularly in our Highland operations.
“There has been a large increase in demand driven by the impending VAT increase, which will have a significant effect on the price of a new car, and the scrappage scheme.
“Customers are also taking advantage of the strong new car offers available and current VAT levels to trade in their old car for a more fuel-efficient and safer vehicle.”
Duncan Macpherson, general manager at Ford outlet Grant’s of Aviemore, said: “We were surprised because all our expectations were surpassed for new and used cars.
“People are looking for good value. They want cars with high miles to the gallon and low road tax. Everyone wants those types of cars and they are asking questions about emissions and mileage.”
Jim Mackenzie, sales director at Dicksons of Inverness, said the increase was caused by the government’s scrappage scheme, with sales of Kia and Nissan vehicles particularly strong.
He said: “The figures for the rest of the year are really encouraging. The total sales of new cars in November last year has already been met on the fifth day of this month.”
Murdo Maclean, of BMW dealership Calterdon in Inverness, added: “The rest of the year is still looking good and we’ve had 15 orders for March already.”
Chris Rankin, managing director of Inverness-based Ness Motors, which is a Renault dealer, said: “We have seen a real growth in the new car market compared with October last year.
“I think that is down to three things – the buoyant market, the government scrappage scheme and longer new car delivery lead times.
“The way we are tracking at the moment we are on course to see a vast increase in our new sales volume in the final quarter compared to the same period last year.”
Sales throughout Scotland were up by nearly half (45%) to 14,807, giving a big boost to dealerships which were hit hard by a downturn in consumer spending following the credit crunch. The latest monthly SMTA figures showed new car sales in Tayside were up 46% from a year ago to 933, while there was a 53% increase in Grampian to 1,490.
Elsewhere in Scotland, the Borders had a 94% rise to 257, Fife increased by 75% to 861, Lothian was 63% higher at 1,760, and Dumfries and Galloway was up by 40% at 337.
Strathclyde saw a 37% rise to 7,356 and the total of new car sales in the central region grew by 9% to 257.
SMTA chief executive Douglas Robertson said: “There can now be no doubt that the scrappage scheme has resulted in many new sales.”
The strong figures coincided with other data showing 24 franchised dealerships had become insolvent during the January-August period.
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