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New Car Sales Expected To Fall AgainNow that September has arrived, the month brings with it the latest number plate, the new 61 plate. This time of year usually sees motorists rush to buy new registrations, but industry experts believe that families will choose to keep their existing cars and pay off debts instead. Car dealerships are understandably hoping that the reverse will happen and car sales will increase, as new car registrations have fallen for thirteen consecutive months.
The AA�S Car Purchase Index shows that many motorists plan to hold on to their cars longer, and only one third are looking to change their vehicle within the next two years, and less than a fifth of these plan to buy a brand new car. They also report that those that are planning to buy a car will spend than last year. The number of motorists expecting to spend less than �5000 on their purchase has increased from 23 per cent last year, to 26 per cent this year.
Motorists are also expected to choose to use savings to pay for the car rather than take out a finance loan. The number of motorists looking to take out a loan has fallen from twenty to eleven percent in the last two years. This is come as another blow to car dealers who earn money from lucrative in-showroom car finance. Bristol, Southampton and Leicester car dealers will be hoping that sales increase this month, although many are remaining positive as there are many new models to increase consumers, as well as plenty of special offers to try to boost sales in this current challenging economic climate.