The UK new car market is forecast to fall by 3.5 per cent next year to around 2.6 million cars, according to Glass's.
According to Rupert Pontin, director of valuations at Glass's, the industry is likely to feel uneasy about the latest figures after becoming used to seeing year-by-year surges in the new car market. However, he suggests that a 2.6 million market in 2017 would still be a positive performance following this year's economic instability.
Despite the predicted fall in the market next year, many new car dealerships are continuing to see healthy sales and as such require up to date dealership insurance to ensure they are adequately covered to sell any new stock.
Commenting on the sales forecast, Mr Pontin said: “We should certainly not be feeling as though there is any kind of crisis underway and the underlying strength of the economy will be quite good. Conditions are simply likely to become a little more difficult.”
He continued: “This year has, of course, been one of almost unprecedented political and economic shocks, but the new car market has proven remarkably resilient."
According to Motor Trader, the Glass's report suggested that the main reason for a fall in new car sales is a drop in the pound, which has an effect on the amount of disposable income people have available for car purchases, while the poor exchange rate also makes it more expensive for car dealers to import cars into the UK.
Mr Pontin added: "However, we expect to see manufacturers and dealers continue to offer some very attractive new car deals, especially based around PCPs, and for there to be a high general level of enthusiasm in the new car sector.”
