Tuesday, June 08, 2010
Deloitte warns of difficult months ahead
David Raistrick, automotive partner at Deloitte, welcomed Friday's 13.5 increase in car sales in May but warned of difficult times ahead with both fleet and private sales set to stall.
"Uncertainty in the public sector over spending cuts, combined with nervousness in the corporate sector will most likely lead to a further slowdown in fleet sales.
"From a private market perspective, the effects of the end of the scrappage boost are definitely being felt.
"Next month's budget will determine whether the VAT rate will be increased, which could have a further negative impact on sales as buyers could face increased purchase prices.
A VAT rate increase combined with potential price rises on imported vehicles due to the ongoing weakness of sterling, could lead to further difficult trading conditions in the short term.
"On a more positive note, the budget may generate a rise in the strength of sterling and consumer confidence, thereby leading to a positive trading environment in time for the all important September new plate registrations."
DATED: 08.06.10
FEED: MT
